The results of a year-long investigation into controversial extended warranties are about to be published – raising fresh doubts over their value to consumers and the way in which they are sold. Extended warranties – often aggressively promoted by electrical retailers such as Dixons and Comet – are supposed to help if expensive items need repair or replacement after the manufacturer’s guarantee runs out. They can cost almost as much as the item they cover. The Office of Fair Trading first investigated extended warranties in 2001, and in 2005 it introduced tighter rules on selling them. The watchdog later found some shops were ignoring the rules, eventually leading to the current investigation.

As they put their final touches to the report, OFT officials will be aware of tough action being taken by authorities in other countries. In December, the Italian equivalent fined computer giant Apple £750,000 for allegedly mis-selling expensive warranties to customers who had no need for them....Read more here--: Revealed: The full cost of 'cash-saving' warranties from big High Street retailers