JB Hi-Fi faces class action over extended warranties
Electronics giant JB Hi-Fi has been accused of misleading consumers by selling extended warranties that are worthless or of little value. A new class action seeks compensation for customers who bought an extended warranty from the retailer over the last 12 years.
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TVTranscript
00:00 Yes, very serious allegations. So the law firm Morris Blackburn has lodged a class action
00:07 against JB Hi-Fi, accusing the retail giant of selling extended warranties that were junk,
00:14 that offered little to no value to customers because it alleges they already had benefits
00:21 under consumer law and the extended warranties didn't go further. And the lawsuit claims
00:27 that JB Hi-Fi has breached consumer law by doing this. Let's hear from Miranda Naje
00:34 from Morris Blackburn.
00:36 We know that JB Hi-Fi's warranties never lasted more than three to six years after the date
00:42 of purchase. And so when you think about buying, for example, a $1,500 fridge or a $2,000 fridge,
00:50 you're expecting a fridge like that to last a lot longer, to have a much longer life than
00:54 six years. And so it's our allegation, I suppose, through this case that in fact the Australian
01:02 consumer law remedies were likely to last longer in most cases.
01:06 And what's been the response from JB Hi-Fi to this, Michael?
01:10 JB Hi-Fi didn't respond to us. They declined to comment. But JB Hi-Fi is a publicly listed
01:16 company and this morning it's made a statement to the Australian Stock Exchange, which says
01:22 that it takes its compliance with legal obligations very seriously and believes it's done that
01:28 and it intends to vigorously defend the legal proceedings lodged by Morris Blackburn. So
01:35 a very strident defence of its position from JB Hi-Fi there and no doubt what will be a
01:41 long legal battle to follow.
01:43 So what's the advice for consumers?
01:46 The Consumer Group Choice and the ACCC both say that people should really be boned up
01:51 on their rights before they go in to make a purchase because when you're at the counter
01:56 or about to purchase online you can be under a bit of pressure to move ahead. And there
02:01 are a number of things that stores must do in terms of the goods they're selling to make
02:07 sure that they're fit for purpose, that they work the way they're supposed to and a range
02:11 of other obligations. So the advice is make sure you know what the store is meant to do
02:19 based on its obligations and if you're thinking about an extended warranty really press them
02:24 about what is the extra benefit that's going to be provided that's not already covered.
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