Argos has announced it will provide over £500,000 to customers who may have missed out on a cheaper extended warranty deal.
The retailer was recently investigated by the CMA and has agreed to fix the way it sells extended warranties to customers and provide a “goodwill gesture” to those who may have missed out on a better deal.
The news follows the CMA findings that the firm breached its “legally binding commitment” from 2012 which promised to provide a link to a price comparison website every time it offers an extended warranty for domestic electrical products online, so that customers can compare the price of the warranty.
As part of routine monitoring, the CMA found that Argos was not displaying this link and the company subsequently admitted it had not been doing so for more than a year.
In total, Argos’ breach affected sales of over 400,000 extended warranties with a reported 114,000 of those customers may have found a cheaper deal through the price comparison website, had they been prompted to shop around.
Argos said it will now contact its customers who may have missed out on a lower price and make them aware of the error.
Adam Land, senior director of remedies business and financial analysis, CMA, said: “We welcome Argos’ promise to provide a goodwill gesture of over half a million pounds to customers who may have missed out on a cheaper extended warranty deal, after it failed to remind shoppers of their options.
“It’s only right that Argos is now taking steps to fix its error and make sure that something similar doesn’t happen in the future. Any breaches of this kind must be put right immediately, or we will take action.”
The CMA has also written publicly to Argos, outlining the steps the retailer has agreed to take. It will now monitor Argos’ compliance and consider formal enforcement action “should it fail to do as agreed”.