JB Hi-Fi faces class action over 'worthless' warranties

The news: Maurice Blackburn lawyers have launched a class action against JB Hi-Fi over extended warranties that covered rights already offered by Australian consumer law.

The numbers: The action was lodged with the Victorian Supreme Court on Friday, alleging JB's Extended Care Plans or Extra Care Plans offered since 2011 were merely a "junk add-on". According to consumer advocate CHOICE, about a third of consumers have bought additional warranties at one time or another, despite being of little or no value. Last year JB Hi-Fi's sales topped $9.6 billion and netted more than half a billion in profit after tax. Maurice Blackburn has not confirmed its number of group members so far, but the registration remains open for consumers who purchased extended warranties from JB Hi-Fi in Australia any time between 1 January 2011 and 8 December 2023.

What they said: "These warranties are in most cases little more than a junk add-on to consumers' purchase of the household goods they actually want," Maurice Blackburn principal Miranda Nagy said.

In a statement, the retailer said: "JB Hi-Fi takes compliance with its legal obligations very seriously and considers that it has complied with relevant laws at all times.