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Topic # 240885 1-Oct-2018 11:34
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Just received:

 

 

PB Technologies Ltd (PB Tech) has been fined $77,000 in the Auckland District Court after pleading guilty to 14 charges brought by the Commission for selling non-compliant extended warranties.

PB Tech markets itself as New Zealand’s largest computing and IT retailer. Between 11 May and 30 November 2017, the company sold over 4,000 of its PB Care extended warranties without giving consumers information to enable them to make an informed choice about whether to buy the extended warranty.
 
Under the Fair Trading Act, consumers should have received information including:

 

  • A summary of consumers’ rights and remedies under the Consumer Guarantees Act (CGA).
  • A summarised comparison of consumers’ CGA rights and remedies and those provided by the extended warranty.
  • Written and verbal information about the right to cancel the extended warranty agreement and obtain a refund if customers changed their minds within five working days.
  • A written copy of the extended warranty at the time of purchase.

PB Tech failed to comply with these legal requirements.
 
In sentencing, Judge Thomas said he agreed with the Commission that there is a high need for a deterrent response.
 
“There is a significant public interest in ensuring that warranties and policies of that nature, renowned for their exclusions and limitations, are fairly provided or that disclosure relating to those is fairly provided to customers so that they can make an informed decision in investing a significant sum of money in that product,” he said.
 
PB Tech also sold AppleCare warranties for Apple products. When selling AppleCare, PB Tech did not give consumers a copy of the extended warranty agreement at the time of sale and did not inform consumers of their cancellation rights.
 
Commissioner Anna Rawlings said the law clearly sets out the information that businesses must give to their customers when selling extended warranties.

“That information reminds customers of their rights under the Consumer Guarantees Act and helps them to decide whether an extended warranty offers useful extra protections and is worth the additional cost.”  
 
“It also ensures that customers who make a decision on the spot know that they can reconsider within five working days, cancel the extended warranty and get their money back. All retailers selling extended warranties should take appropriate steps to make sure that their documentation is compliant and that their sales staff know what they need to do to comply with the law in store,” she said.

Background

 

PB Tech Warranties
During the seven month charge period PB Tech sold around 4,154 PB Care warranties both online and across its 11 stores and service centres nationwide. Around 250 warranties were sold via its website.  
 
PB Care warranties were sold for between 10-15% of the value of the good, depending on the length of the warranty. AppleCare warranty prices also varied depending on the product. Forexample a 2 yearwarranty for a $460 Apple iPad was $129.56.
 
Extended warranties
An extended warranty is sold atadditional cost when buying goods such as computers, mobile phones andwashing machines. An extended warranty is different to a manufacturer's warranty, which comes free with goods. It is also different from guarantees provided automatically under the Consumer Guarantees Act.

 





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  Reply # 2099285 1-Oct-2018 11:51
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Extended warranties are a scourge. 


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  Reply # 2099295 1-Oct-2018 12:04
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The fine is nowhere near heavy enough. That’s about $20 per warranty and I bet they made more than that - so they’re still ahead financially. There should be a heavy element of punishment in this. Ridiculous.

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  Reply # 2099326 1-Oct-2018 13:16
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I could name a few big chains that do exactly the same thing, sounds like they are the first and an example to others to start following the law .





Common sense is not as common as you think.


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  Reply # 2099340 1-Oct-2018 13:40
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PB tech should be prosecuted for failing to recognise the cga too.
.
But our commerce commission are hapless and possibly incompetent.

If they prosecuted Noel learning then why not the others who are equally abusive of the law.


The Aussies ACCC are far better.

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  Reply # 2100153 2-Oct-2018 15:47
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I have question about PB Tech warranty but in other way, ~2y.a. I bought a device ~$530 in the box, on the box a big "ads/label/print" clearly says "3 years warranty + 3 years technical support", I bought it in offline shop and registered on my account. Yesterday I returned the device for a replacement as the current one is faulty. When the tech checked my account, the account says that the device has just 1 year warranty, I pointed on the box and the tech said "So, what? the warranty is gone, it s 1 year"(not exact words). We had a long conversation about it and ended with nothing, he told me they will call me. What my rights? I see here as misleading advertising. You?

 

PS: No. I don't think that sales person noted me about 1 year warranty in the day of purchase, otherwise I wouldn't buy it, why would I?


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  Reply # 2100168 2-Oct-2018 15:59
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01EG:

 

I have question about PB Tech warranty but in other way, ~2y.a. I bought a device ~$530 in the box, on the box a big "ads/label/print" clearly says "3 years warranty + 3 years technical support", I bought it in offline shop and registered on my account. Yesterday I returned the device for a replacement as the current one is faulty. When the tech checked my account, the account says that the device has just 1 year warranty, I pointed on the box and the tech said "So, what? the warranty is gone, it s 1 year"(not exact words). We had a long conversation about it and ended with nothing, he told me they will call me. What my rights? I see here as misleading advertising. You?

 

PS: No. I don't think that sales person noted me about 1 year warranty in the day of purchase, otherwise I wouldn't buy it, why would I?

 

 

 

 

If the box said 3 years and it failed after 1, Then the fair use policy would come into play regardless of what every anyone says. Just request their manager then request where to send the notice of court hearing. 

Cheers





 


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  Reply # 2100176 2-Oct-2018 16:05
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Coil:

 

If the box said 3 years and it failed after 1, Then the fair use policy would come into play regardless of what every anyone says. Just request their manager then request where to send the notice of court hearing.

Cheers

 

That I was thought and the fair use policy is 3 years anyway. Thanks

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  Reply # 2100190 2-Oct-2018 16:19
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Coil:

 

If the box said 3 years and it failed after 1, Then the fair use policy would come into play regardless of what every anyone says. Just request their manager then request where to send the notice of court hearing. 

Cheers

 

 

The problem is that they can safely ignore the CGA because the majority of people have no wish to use the costly disputes tribunal. 

 

The CC should police CGA compliance on behalf the people of new zealand whose taxes pay for their operation.   Get the big guys to fall into line and then the little operators should follow suit. 


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  Reply # 2100203 2-Oct-2018 16:41
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surfisup1000:

 

The problem is that they can safely ignore the CGA because the majority of people have no wish to use the costly disputes tribunal. 

 

 

Usually you only have to threaten it, not use it.  And it's not expensive if you win.





Mike

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  Reply # 2100206 2-Oct-2018 16:47
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surfisup1000:

 

The problem is that they can safely ignore the CGA because the majority of people have no wish to use the costly disputes tribunal. 

 

If I remember disputes tribunal cost $50(for a case < $5000), if this is a win situation(I hope so) you can apply for the disputes tribunal cost, plus you can apply for a compensation and of course the cost of device

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