Competition Commission calls for warranties evidence
OFT begins probe of electricals retailers
July 8 2002
As expected, The Office of Fair Trading (OFT) has formally asked asked the Competition Commission to investigate the market for extended warranties on electrical goods.
The referral follows a nine month study by the OFT which found that competition in the market did not appear to be working effectively and that consumers were not adequately informed or protected.
The investigation has been criticised by Dixons and Kingfisher, the UK’s biggest electricals retailers, but was welcomed by Asda, which has a history of positioning itself as a consumer champion on such matters.
The Commission will look at issues including whether a monopoly situation exists, whether it is being exploited, and suggest to the OFT any remedies which it considers would address the situation. The report will be issued in a year’s time, and the Commission has invited evidence by July 22.
Denise Kingsmill, a deputy chairman of the Commission, will head the inquiry, with other members to be appointed soon.
