If you watched any of the free to air TV News last night or read a national newspaper you would be of the belief, that legal Company Maurice Blackburn had taken legal action against JB Hi Fi for selling worthless ‘extended warranties’ when in fact no mainstream, consumer electronics or appliance retailer is selling extended warranties today, nor have they done for more than a decade since the Trades Practises or ACL laws were changed.

After a publicity stunt by Maurice Blackburn lawyers, the Australian and News.com.au claimed that ‘JB Hi-Fi has been accused of selling customers worthless extended warranties for more than a decade in a landmark class action that could in a landmark class action that could act as a test case for Australian retailers’ they claimed.

They like the ABC, Channel Nine, Seven and Ten claimed that Law firm Maurice Blackburn had lodged the class action in the Victorian Supreme Court on Friday – describing it as the first of its kind in Australia – alleging JB Hi-Fi’s extended warranties were of little or no value because customers already held the same rights for free under Australian Consumer Law.

The only problem is that retailers in Australia have not sold ‘Extended Warranties’ since 2011 when the Trades Practises Act was changed.

What JB Hi Fi and the likes of The Good Guys sell and have been selling since 2012 is an ‘Extra Care’ package with the conditions relating to what is offered under this package spelt out clearly on their web site.

See here.

They also spell out warranty obligations on their web site and in downloadable PDF brochures.

This is because back in 2011 retailers their insurance Companies and several industry bodies, worked with the Australian Competition & Consumer Commission on the implementation of how the old Extended Warranties packages would be abandoned to be replaced with “Extra Care packages which were developed with the full knowledge of the Australian Competition and Consumer Commission who were quick to take action against Harvey Norman back in 2012 under the new act but have not taken any legal action relating to warranties

It also involved teams of lawyers who in the drafting of conditions for the likes of JB Hi Fi and NARTA members that include the likes of Bing Lee, JB Hi Fi, The Good Guys, Betta Home Living, Radio Rentals and Bi-Rite Electrical developed programs that covered both consumer rights and obligations by suppliers and retailers.

On their web site JB Hi Fi claim that when one of your products suffers an unexpected fault that one of their JB Hi-Fi Extra Care, packages will deliver peace of mind and allow consumers to get themselves back up and running again.

They even go on to claim that ‘Even if you don’t purchase JB Hi-Fi Extra Care, you may be entitled to a repair or replacement under the Australian Consumer Law (ACL) (even after the manufacturer’s warranty and JB Hi-Fi Minimum Voluntary Warranty period have expired).

What Choice and Maurice Blackburn failed to communicate to media organisations before they went after trying to solicit consumers to join one of their class action cases was the conditions that retailers are offering as part of their ‘Extra Care packages’.

Below is some of the benefits of a JB Hi Fi Extra Care Package which replaced the old ‘Extended Warranty’ packages that were abandoned in 2011` and 2012.

case:

Maurice Blackburn and Choice thrive on publicity and a visit to the Maurice Blackburn web site reveals a team of spin doctors who job is to spruik Maurice Blackburn services.

Back in 2022 Choice claimed that they ran a ‘Mystery shopping investigation where they called 80 retail stores.
They claimed that ‘More than 71% of stores in our mystery shop actively misrepresented a consumer’s rights to a remedy”.

There was no mention of the rights being clearly available on various retailers, web sites or that there are downloadable PDF brochures that spell out the rights of consumers.

It appears that some of the retail staff they spoke to were part time or casual staff, with Choice staff who ran the exercise now facing the real possibility that they may have to appear in court to give evidence.

ChannelNews has not spoken to any executive from JB Hi Fi or any other retailer re this story.

We have called Maurice Blackburn for a comment.

Back in 2016 the ACCC who have the power and responsibility to police warranty offences took action against Harvey Norman, this resulted in a Harvey Norman franchisee, Bunavit Pty Ltd, being ordered to pay a total of $52,000 in penalties for making false or misleading representations regarding consumer guarantee rights.

The Court heard that sales representatives at the Harvey Norman Superstore Bundall in Queensland, operated by Bunavit, made ten false or misleading representations concerning the existence, exclusion or effect of a guarantee or right, when they made statements to two consumers which represented that Bunavit:
 had no obligation to provide a remedy and the consumer would need to pursue the manufacturer’s warranty directly with the manufacturer.
 could not assist further unless the consumer paid for some or all of the cost of the repair.
The ACCC has obtained penalty orders totalling $286,000 against ten Harvey Norman franchisees in respect of false or misleading representations regarding consumer guarantees.

It appears that the ACCC is not party to the Maurice Blackburn case with observers claiming that this case is going to be all about what is “fair and reasonable”.