Argos to dish out £5 gift cards to 114,000 customers with extended warranties after failing to make them aware of cheaper alternatives
More than 100,000 Argos customers who bought an extended warranty from the retailer online between July 2019 and October 2020 will soon get a £5 e-gift card, after the Competition and Markets Authority (CMA) found the retailer failed to make customers aware of cheaper alternatives.
The CMA says Argos failed to include a link to a price comparison website every time it offered an extended warranty for home appliances online, putting it in breach of a formal agreement it signed with the competition watchdog in 2012.
Had a link been provided, 114,000 customers may have found a cheaper warranty through a price comparison website, the CMA said today. The CMA added that while Argos has now corrected its policy, it will continue to closely monitor the retailer.
Extended warranties are insurance products you can purchase to provide extra protection, over and above a standard guarantee, to cover the cost of repairing a product (eg, a washing machine) if it breaks down. For help with faulty goods, see our Consumer Rights guide for further info.
Those affected will get a £5 e-gift card and the option to cancel their policy
You're eligible for a £5 e-gift card if you bought a 'Breakdown Care' policy for larger electrical items from Argos online between July 2019 to October 2020.
You don't have to do anything at this stage – Argos will contact you directly by email with a £5 e-gift card (it said it would follow up by post if the email bounces back).
Argos couldn't confirm if customers who've since cancelled their warranty or those whose warranties have since expired would get the voucher, though it was keen to stress that it would contact all affected customers. The CMA added it would check that this has been done.
If you believe you're eligible but don't hear from Argos, it could be worth contacting Argos' customer services via its website or on 0345 640 2020.
Affected customers will also have the option to cancel their policy for a pro-rata refund, meaning you'll get back any unused months, though you don't have to.
What does Argos say?
An Argos spokesperson said: "We're contacting customers to apologise after an error with our website meant our link to a comparison website was not as accessible to customers as it should have been when purchasing Argos Care product insurance. We've put this right and customers affected can continue with their extra protection or cancel and receive a refund."
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