Consumer class action launched against JB Hi-Fi over ‘junk’ warranties

(Source: Bigstock)

JB Hi-Fi is being sued for allegedly selling “worthless” extended warranties to customers for more than a decade, in a class action filed by plaintiff law firm Maurice Blackburn Lawyers

The warranties – named Extended Care Plans or Extra Care Plans – were offered to customers when they purchased consumer electronics, home appliances and home entertainment products.

They were of little or no value because – the class action argues – customers already had the same rights for free under the Australian Consumer Law.

A 2023 survey found 32 per cent of consumers had bought them at one time or another, often after being convinced by sales techniques.

Maurice Blackburn Lawyers principal Miranda Nagy described the warranties as a “junk add-on” as they expire just three to six years after purchase despite the high 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,” said Nagy.

The class action alleges JB Hi-Fi used misleading conduct in selling the extended warranties and failed to inform customers about their rights under the Australian Consumer Law. 

The suit is seeking refunds for consumers who bought such warranties between January 1, 2011 and November 29, 2023.

Further reading: JB Hi-Fi says full-year profit fell, but sales up 4.3 per cent

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