Legal services could be needed as consumer watchdog looks at warranties

A government watchdog is set to look into the world of extended warranties, which might interest those looking for legal services.

The Office for Fair Trading (OFT), which deals with consumer rights, is launching a market study to see whether this type of insurance is value for money or not.

"Consumers buy millions of extended warranties on domestic electrical goods each year and we want to make sure they are getting value for money," said the office's director of consumer and goods Claudia Berg.

"We plan a short and focused market study to find out quickly what, if any, action is needed to make this market more competitive," Ms Berg.

The OFT added that consumers currently spend £750 million each year on warranties, despite often not being informed whether they are optional or not, which could lead to shoppers seeking out legal services.

Recently, it was announced that the European Union is planning to make amendments to the Consumer Rights Directive, which would see people being able to return goods up to 14 days after their purchase.

Published by Rob Stanworth