I always have a chuckle when the extended warranty Vs CGA saga has a mention on the news. If the product you purchase only has a 12 month warranty under the CGA how long should the warranty be? 2-3-4-5 years no one knows as the CGA doesn't tell you. People want a definitive answer or a number for them to have peace of mind. I am sick of hearing oh you should be covered under the CGA but in reality you are not. If the CGA says you should be covered for 5 years than why has the government not stepped in and made it mandatory for the product to have this warranty written on paperwork so the consumer has proof and peace of mind. Because in the real world they do not have the power to do this and it would probly see a lot of products no longer available to New Zealand consumers and the end of small retailers. So I would say to the consumers institute practise what you preach and also have a Fair Go and stop missleading us poor people and get their heads out of the clouds.
I agree with the ministry of consumer affairs. Consumers want to save money, not spend like hell. Retailers want to make money. The main reason, they can escape baring the cost of replacements or repair. Why would you pay for something that you get for free? Retailers are in the business of making money. As an ex-employee of Noel Leeming, I found that you are disciplined for not selling extended warranties. I did my best, but at the end of the day it is the customer's choice. You cannot force the customer or threaten to get them to buy an extended warranty. One the other hand, the law says it depends on the price you pay. I also found out that it is partly manufacturers who compete buy making cheap products that break. They do this on purpose because that is the only way they can guarantee for themselves future sales.
extended warranties are awesome