Dixons defends warranties business
Clare rejects ‘unfair’ claim
December 18 2003
Dixons has defended its record on the sale of extended warranties.
The DTI has accepted recommendations from the Competition Commission that will tighten up the rules on warranties at point of sale (see related article).
Dixons Group chief executive, John Clare said: “We disagree with the conclusion that the market for extended warranties is unfair, uncompetitive or that there is excessive pricing.
“It is our view that this market is extremely competitive as demonstrated by the wide range of market entrants and variety of products which meet a clear consumer need as recognised by the Competition Commission.
“As Sir Derek Morris said this morning: ‘Extended warranties undoubtedly provide a valuable service…. (and) many purchasers were very satisfied with them.’ We believe that is the case for the vast majority of our customers.
‘We note that several of the remedies to be adopted are already practised by the Dixons Group and we welcome the standardisation of these procedures across the industry.
“We have some concerns about the practicality of others and look forward to discussing their implementation in more detail.”
