Many retailers who sell consumer electronics devices such as computers, televisions, stereo equipment, CD and DVD players, offer extended warranties or service contracts with every purchase. These extended warranties or service contracts can cost several hundreds of dollars. “While these products can offer broader protection than the accompanying factory warranty, consumers should be cautious and take the time needed to make themselves aware of what is contained in any extended warranty or service contract prior to purchasing one,” Attorney General Peter Heed said. “I urge all consumers to review carefully any extended warranty or service contract in order to determine whether the extended warranty or service contract is worth its price.”

When making this determination, Heed suggests that the consumer should ask several questions. Among these are:

• What does this actually get me above and beyond the factory warranty?
• What is the likelihood that the item I am buying will break down while the extended warranty is in effect?
• If it does break down while the extended warranty is in effect, how likely is it that the repairs will cost more than I am paying for the extended warranty?
• Where do I have to go for service under the extended warranty? Will the original seller repair the item or will I have to ship it? If I have to ship the item, is shipping covered?
• Who is the warranty company? Are they reputable?
• By the time the extended warranty has expired, how much will the item I am buying be worth?

For more information on consumer related issues, please contact the Consumer Protection Bureau at (603) 271-3641 or visit their website. 223691