Think twice before purchasing extended warranty in Sask.

REGINA – When consumers are making a major purchase, such as a computer or a car, not only are they tasked with deciding the make and model, but also whether to purchase extended warranty.

However, consumers might not be aware they are already covered under Saskatchewan law.

“It doesn’t matter what they product is, doesn’t matter if it’s a computer or car, they’re covered,” said Matthew Barton, with the Financial and Consumer Affairs Authority.

Although many people aren’t aware, statutory warranty rights have been around for 50 years, for issues including durability.

“Consumers are really aware of their rights when it comes to purchasing extended warranties, because that’s what’s pushed by the companies,” said Barton.

Consumer Reports recommended against buying warranty extensions for a variety of reasons. First, buying extended coverage may double-up your coverage as manufacturers often will replace the item for free. Secondly, many credit card companies automatically extend the warranty for the first year.

Data showed products typically only break after warranties expire and repairs aren’t usually worth the price of extra coverage.

“I think it’s going to be on a case-by-case basis. It depends on the product, depends on the good, and it depends on the person and their willingness to assume the risk,” said Barton.

Transparency is key for both the business and consumer for extended warranty transactions.

“If this is a significant purchase, I certainly think it’s worth your time to go through things piece by piece,” said Sara Wheelwright, the founder of Trusted Regina. “Don’t be afraid to stop the train if something just doesn’t make sense.”

For example, Wheelwright said consumers should confirm whether the cost of labour is covered if something breaks.

Barton said the FCAA deals with a handful of complaints each week; however, most disputes are resolved between the consumer and the retailer. In rare occasions, the dispute can end up before the courts.

Questions about the Consumer Protection and Business Practices Act can directed to consumerprotection@gov.sk.ca.

The Consumer Protection and Business Practices Act:

Warranties 

Suppliers are deemed to give minimum warranties known as statutory warranties whenever they sell a new or used consumer product.

The minimum statutory warranties include that:

• the product belongs to the buyer without undisclosed liens or other claims;
• the product is of acceptable quality;
• the product is reasonably durable and fit for the use intended as well as for any specific purpose stated by the retailer;
• the product matches its description and the quality of any samples shown to the consumer; and
• spare parts and repair facilities will be available for a reasonable period of time.