What’s News, Breaking: Tuesday, December 20, 2022
WARRANTY OR SERVICE CONTRACT? CONSUMER PROTECTION DIVISION CLARIFIES DISTINCTION
As part of its consumer alert holiday series, the New York Department of State’s Division of Consumer Protection reminds shoppers of state laws regarding warranties and service contracts so consumers can make informed decisions about holiday purchases, particularly in their understanding of the differences between warranties and service contracts for appliances and other major purchases. A warranty is a promise to the consumer that the product purchased, or service provided, will meet certain quality standards, and that repair, maintenance, replacement or refund of a product will be made for a certain time period if these certain quality standards are not met. Whereas a service contract, sometimes called an “extended warranty,” is not actually a warranty but simply a contract to perform repairs or maintenance on a product, usually with exclusions.
Consumers are encouraged to understand what is already covered in the warranty before purchasing a separate service contract; for example, if the warranties on parts and labor to repair those same parts expire at different times.