Consumers

Understanding Consumer Warranties

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There are many different terms used to describe the various warranties offered on products.

Here are some of those terms:

  • replacement plan,
  • coverage,
  • protection,
  • satisfaction guaranteed,
  • manufacturer’s warranty,
  • legal warranty,
  • warranty of good working order on used cars and motorcycles,
  • warranty of good working order for appliances and electronic devices,
  • extended warranty,
  • insurance,
  • “lifetime” warranty.

How can you know which warranty applies, when it applies and who is responsible for respecting it?

The basic warranty is the legal warranty. It’s automatic and free of charge. 

Other warranties of good working order provided by law are also automatic and free of charge: 

Other warranties can be added to the legal warranty:  a manufacturer’s warranty (also called a “conventional” warranty) and an extended warranty. 

Before charging a customer for an extended warranty, merchants must explain the protections offered by the other warranties attached to the product. For example, the legal warranty. 

Once consumers are told about these different warranties, it’s up to them to compare them and decide whether they want to pay for extra protection.