Yahoo Finance JB Hi-Fi hit with class action over ‘junk’ extended warranties
The retail giant has been accused of selling extended warranties offering the same rights that customers already get free.
JB Hi-Fi has been hit with a class action for allegedly ripping off customers by selling them worthless extended warranties for more than a decade.
The Maurice Blackburn Lawyers lawsuit alleges the extended warranties sold by the retail giant offered consumers the same rights they already get free under Australian Consumer Law.
These extended warranties were offered to customers when purchasing goods, including electronics, home appliances and home entertainment products, and are also called ‘extended care plans’ or ‘extra care plans’.
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Maurice Blackburn Lawyers principal Miranda Nagy said the class action would seek refunds for the thousands of customers who bought the expensive policies.
“These warranties are, in most cases, little more than a junk add-on to consumers’ purchase of the household goods they actually want,” Nagy said.
“JB’s extended warranties expire just three-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.”
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What rights do consumers already have?
Customers have basic rights, known as consumer guarantees, when they buy a product or service. This includes products being of acceptable quality and being fit for purpose.
According to the ACCC, if the product doesn’t meet these standards, customers may be entitled to get a repair, replacement or refund.
Maurice Blackburn alleges JB Hi-Fi used misleading or deceptive conduct or unconscionable conduct in selling the extended warranties. That included allegedly telling customers the warranties applied for longer than the rights under Australian Consumer Law, provided them benefits the law did not, and were of value.
How to join the class action
The class action covers customers who bought an extended warranty from JB Hi-Fi between January 1, 2011 and December 8, 2023 in-store or online.
This includes people who have made a claim under the warranty or whose warranty has since expired.
You do not need to register to be a part of the JB Hi-Fi class action, however you may want to register with Maurice Blackburn to receive updates about the case.
Maurice Blackburn notes it does not cost you anything to be part of the class action and you do not need to pay anything upfront. The case was lodged in the Victorian Supreme Court on Friday.
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