JB Hi-Fi facing a class action for selling “junk” extended warranties. Source: Winxptwker, Wikimedia Commons
JB Hi-Fi says it will be fighting a class action alleging it sold “junk” extended warranties, which offered customers no more benefit than what is already provided under Australian consumer law.
Law Firm Maurice Blackburn Lawyers is leading the lawsuit, aiming to receive refunds for customers who took out extended warranties when buying products from JB Hi-Fi.
“JB Hi-Fi takes compliance with its legal obligations very seriously and considers that it has complied with relevant laws at all times,” a spokesperson for JB Hi-Fi said in a statement on Monday.
“JB Hi-Fi intends to vigorously defend the proceedings.”
Principal Lawyer at Maurice Blackburn, Miranda Nagy, said that the warranties “are in most cases little more than a junk add-on to consumers’ purchase of the household goods they actually want.”
“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,” Nagy said in a statement.
The law firm also alleges that JB Hi-Fi used misleading, deceptive conduct, or unconscionable conduct, to sell the warranties, with customers being either explicitly or implicitly told that the extended warranties were longer lasting than rights under consumer law, offered extra benefits not provided under consumer law, and were of value to customers.
The law firm says JB Hi-Fi failed to provide information to its customers regarding their rights under consumer law, impairing the customers’ ability to make a proper, informed decision.
Customers were led to purchase these extended warranties, known as “extended care” and “extra care” plans, mistakenly believing they were of value.
Consumer rights under Australian consumer law entitle customers to a repair, replacement, or refund if an issue occurs within a “reasonable time” after purchase.
These laws also state that products sold must be of acceptable and durable quality, must be fit for purpose, and match their advertising description, among other things.
Maurice Blackburn said the class action will cover those who bought an extended warranty from JB Hi-Fi between January 1st and December 8th, 2023.
