Leading Australian retailers Harvey Norman, JB Hi-Fi and The Good Guys have been accused of misleading consumers with poor-value extended warranties after an investigation led by consumer advocacy group Choice.

A mystery shop initiative run by the non-profit consumer advocacy group found 71 per cent of stores provided misleading information on a consumer’s rights while 91 per cent tried to sell poor value extended warranties that don’t provide sufficient coverage under the Australian Consumer Law, according to Choice editorial director, Marg Rafferty.

“We were shocked by the results of our mystery shop.

“Consumer guarantees mean retailers must help customers if a product breaks within a reasonable period of time – even if the manufacturer’s warranty has expired.”

When asked about consumer rights outside the manufacturer’s warranty period, Rafferty said the stores had tried to sell extended warranties instead.

“Existing consumer rights provide all the protection you need against faulty products, so it’s incredibly disappointing to see these big retailers pushing these poor value extended warranties onto consumers during a cost of living crisis.”

Rafferty says without fines many businesses are getting away with telling consumers they’ll be denied their right to a repair, replacement or refund when something goes wrong with a product or service.