How to Avoid Fraud and Unfair Business Practices When Purchasing Warranties

If the entrepreneur misleads the consumer and the consumer believes that he is being offered an extended warranty, when in fact he is insured, it may be an act of fraud there, ie unfair business practice. In such a case, the entrepreneur is fined by the Czech Trade Inspection.

The extended warranty is negotiated beyond the statutory two-year period for exercising rights to repair or refund when a defective product is found. As a rule, it starts running as soon as the legal one ends, but it can have a different duration.

The problem is, however, that the conditions of application can be different from the classic one. “Therefore, it is necessary to read them carefully and make sure that they are even worth buying,” said the director of the user group dTest, Eduarda Hekšová.

The seller must provide a warranty certificate in the form of written text in an understandable language. According to the law, it must state the specification of the product, the content and conditions of the warranty, the name and registered office of the supplier, and the procedure for exercising rights.

In addition, there should be information that the two-year legal period for exercising rights is not affected by negotiating an extended warranty. “However, the warranty conditions are often expressed in the entrepreneur’s general terms and conditions of business, but this does not change the fact that the seller must provide you with a warranty certificate,” said Hekšová.

A contractual guarantee may contain various exceptions, exclusions and other provisions to prevent its application. The time the entrepreneur has to complain can also be negotiated in a different way – often one can happen on three months compared to the statutory period of thirty days, which is set for two year period for exercising rights from defect.

Unpleasant surprises can also exclude the possibility of withdrawing from the contract, ie refunding money. According to the contractual warranty, however, the customer must usually be entitled to at least deliver a new item without defects or to repair the item.

Insurance can be more complicated than a warranty, because there is also an insurance company. Users should verify that they are a direct party to such a contract and check the relevant insurance terms before making a purchase. “Insurance may or may not have the same scope and conditions as a statutory or contractual guarantee,” explained Hekšová.

Insurance usually only covers selected risks that threaten the insured object. A special feature of insurance that consumers should also be aware of is the need to pay a co-payment or the question of whether the insurance company will pay an amount that is co- like new or amount reduced by age and wear and tear. the thing