Bargain hunters on warranty scam alert: Watchdog warning as stores push needless extended guarantees Studies suggest consumers pay Â£300m a year too much for warranties Some cost as much as Â£139 for 3 years' cover on a Â£349 washing machine Warning particularly applies to products, like TVs and washing machines Shop staff are under enormous pressure to sell the agreements Shoppers looking for bargains in the New Year sales have been warned to steer clear of the â€˜extended warranty stingâ€™. It comes amid predictions that some Â£2.2billion would be spent in the sales yesterday â€" added to the Â£3billion on Boxing Day â€" as an estimated 13.5million customers hit the shops. The warning particularly applies to electrical products, such as TVs, washing machines and dishwashers, which are often sold with extended warranties. Hard sell: Consumers are being warned not to sign up to 'rip-off' extended warranties being offered by many retialers Shop staff are under enormous pressure to sell the agreements, which are effectively insurance policies to cover faults and repairs. Consumer campaigners Which? say that generally shoppers do not need the warranties at all, because products are already covered in other ways, while those who do opt for the warranties can end up paying a rip-off mark-up of 50 per cent and more. Official studies suggest consumers are paying Â£300million a year too much for warranties, which can cost as much as Â£139 for three yearsâ€™ cover on a Â£349 washing machine. Retailers make huge profits from the extended warranties, which can significantly drive up the cost of bargain electricals. Bargain hunt: Shoppers pack onto London's Oxford Street on Boxing Day for the sales However, many manufacturers already offer a free warranty covering the first one or two years of a productâ€™s life and there is also protection under the Sale of Goods Act for up to six years. At the same time, householders can arrange for cover under their home contents insurance policy or through a specialist warranty company, which is cheaper. The Office of Fair Trading has set up a price comparison website in partnership with retailers, including Currys PC World and Argos to highlight the value of shopping around for warranties. Boxing Day was the biggest and busiest day ever seen by online retailers. Families made a record 129million visits to shopping websites, an increase of 15 per cent on the same day last year. One estimate puts web spending on Christmas Day at Â£250million, rising to Â£370million on Boxing Day. As a result, total online spending in December is expected to be well over Â£10billion, which would be a record. The increase in web store visits and spending confirms a dramatic shift in the nationâ€™s shopping habits. In total, consumers spent 17million hours browsing and shopping online on Boxing Day, according to web retail analysts Experian. And the figures also reveal how millions were glued to web stores right through from Christmas Eve to Boxing Day. Many retailers, such as Marks & Spencer and John Lewis, began sales early on their websites on Christmas Eve. Experian said there were 90million online retail visits on Christmas Eve, another 114million on Christmas Day, and 129million on Boxing Day. One in every 88 web searches made in the UK on Christmas Day included the word â€˜saleâ€™ or â€˜salesâ€™. James Murray, of Experian, said: â€˜Boxing Day is perhaps the biggest sales day of the year, with keen shoppers looking for the best bargains available. â€˜But what weâ€™ve seen this year is shoppers were planning bargain hunting on Christmas Day.â€™ A snapshot survey using the website shows how the cost of the agreements varies hugely among retailers. For example, a three-year warranty, which includes a one-year manufacturer guarantee, on a Â£399 LCD television costs Â£99 with the Whatever Happens warranty from Currys PC World. That is a mark-up of Â£34.01, or 52 per cent, compared to the Â£64.99 charged by Tesco under its Drops and Spills Protection Plan. Currys PC World wanted to charge Â£139 for a three-year warranty on a Â£349 washing machine, which would bump up the price by 40 per cent. However, Tesco was offering similar cover for a much lower Â£69.99. The Tesco warranty was also cheapest on a Â£399 laptop at Â£129.99, versus the Â£164.99 charged under the Argos Breakdown care scheme. Looking at a five-year warranty, the website shows that Currys PC World charges Â£119 for an LCD TV costing Â£349, which is some 240 per cent higher than the Â£34.90 charged by Richer Sounds. Dan Moore, assistant director of the OFT, said: â€˜There is absolutely no need to buy an extended warranty at the same time that you buy your appliance. â€˜If you would like additional protection on top of the manufacturersâ€™ or retailersâ€™ standard guarantee, take your time and shop around.â€™ One reason retailers are able to cash in on selling the warranties is because they are routinely ignoring the Sale of Goods Act, which puts an onus on stores to offer repairs and replacements for up to six years. Which? executive director, Richard Lloyd, said: â€˜It is unacceptable that customers could be left out of pocket by following incorrect information from major retailers about their shopping rights. Stores must ensure that the information their staff are giving is correct.â€™ Currys PC World said: â€˜Our Whatever Happens agreements provide customers with some of the most generous and comprehensive support on the market. All of our agreements offer a number of additional benefits, and are driven by the expertise and considerable resource of our Knowhow customer support network.â€™