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KEY POINTSElectronics retailer JB Hi-Fi is facing a class action over extended warranties it sold over a 12-year period.Law firm Maurice Blackburn alleges the extended warranties were a “junk add-on”. It alleges they offered virtually no benefit beyond that provided under Australian consumer law.
JB Hi-Fi is facing a class action over “junk” extended warranties that allegedly offered customers virtually no benefit beyond that provided under Australian consumer law.
Law firm Maurice Blackburn Lawyers is leading what it describes as a landmark lawsuit that will seek refunds for customers who took out extended warranties when buying consumer electronics, home appliances, and home entertainment products from the electronics retailer.
“These warranties are in most cases little more than a junk add-on to consumers’ purchase of the household goods they actually want,” Miranda Nagy, a principal lawyer at Maurice Blackburn, said in a statement on Monday.
“JB’s extended warranties expire just three to six years after purchase, but they add substantially to the cost. Our case alleges they added nothing meaningful to the strong rights for repair, replacement or refund under the Australian Consumer Law rights that consumers already enjoy.”
Maurice Blackburn also alleges that JB Hi-Fi used misleading or deceptive conduct or unconscionable conduct when selling the extended warranties. It says customers were either explicitly or implicitly told the extended warranties operated for longer than rights under consumer law, offered benefits not provided by consumer law, and were of value to customers.
It alleges JB Hi-Fi failed to provide customers with information regarding their rights under consumer law, which it says meant they were unable to make an informed decision over whether to buy an extended warranty.
Customers who bought the extended warranties, known at various times as “extended care”, “customer care”, and “extra care” plans, allegedly did so with a mistaken belief of their value.
So-called consumer guarantees under Australian consumer law may last beyond a manufacturer and extended warranty periods. They entitle consumers to a repair, replacement, or refund if a problem occurs within a “reasonable time” after purchase.
They also stipulate that products sold must be of acceptable quality, including being safe, durable, and free from defects; fit for purpose; and match their advertised description, among other things.
JB Hi-Fi on its website says customers may be entitled to a repair or replacement in the event a purchased product becomes faulty under Australian consumer law, but says the “exact duration” of those rights is uncertain and they “do not provide the certainty” offered under its extended warranty. It also includes a link to its “Understanding Your Rights” brochure.
In 2022, consumer advocacy group Choice conducted a mystery shop at 80 Harvey Norman, JB Hi-Fi, and The Good Guys stores, which sell extended warranties, and asked what rights the mystery shopper would have if their TV broke down outside the typical one-year manufacturer’s warranty period. It claimed about 70 per cent of those stores misrepresented consumer rights.
Maurice Blackburn said the class action covers those who bought an extended warranty from JB Hi-Fi between 1 January 2011 and 8 December 2023.
SBS News has contacted JB Hi-Fi for comment.
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