The stores using misleading claims to sell warranties: Consumers are spending £300million a year on unnecessary cover Which? carried out a mystery shopping exercise at leading electrical stores Currys and PC World, which are part of Dixons, were rated worst John Lewis was considered the best in the investigation Stores such as Currys, PC World and Tesco are misleading customers into spending hundreds of millions of pounds a year on unnecessary warranties for household goods, it is claimed. Official figures suggest consumers are paying £300million a year too much for warranties, which can cost as much as £160 for three years of cover on a £350 washing machine. Now research by consumer champion Which? has found staff are basing sales of extended warranties on misleading claims about what is covered and are using hard-sell tactics to seal the deals. It has been claimed that stores including Currys and PC World are spending hundreds of millions of pounds a year on unnecessary warranties for household goods And Which? questioned whether shoppers need the warranties at all, given that there is already alternative protection which is cheaper or free. For example, many manufacturers offer one to two years" cover as part of the purchase price. Which? carried out a mystery shopping exercise at leading electrical stores Currys/PC World, Tesco, John Lewis, Richer Sounds and Euronics. Researchers made 12 visits to each retailer and asked about buying a TV or washing machine. Staff were then rated pass, unhelpful or fail based on whether they provided useful and accurate information about the warranties. Currys and PC World, which are part of Dixons, were rated worst. Eleven shops offered warranties, but six were rated as a fail and four as unhelpful. Which? said: "A third of our mystery shoppers felt that they were being pushed to take a "Whatever Happens" care plan. Staff made exaggerated claims aimed at getting a sale. Staff at four out of 12 Tesco shops offered a warranty. The information given was unhelpful in two cases with one involving hard-sell tactics "We were told that Whatever Happens "covers everything," but it doesn't cover weather and water damage, and problems due to "neglect and misuse."" Which? said: "On another visit, an employee claimed the Sale of Goods Act doesn't apply to retailers, which of course it does. We were also told, twice, that repairs under the manufacturer's guarantee often take up to six weeks, a claim contradicted by the manufacturers we spoke to. Staff at Richer Sounds offered a warranty on eight out of 12 visits. One of these was scored a fail and four were unhelpful. The information given was unhelpful in two cases with one involving hard-sell tactics. John Lewis scored best. Eight staff offered warranties with only one fail and one considered unhelpful Only one Euronics store out of 12 pushed a warranty, however the shop worker erroneously insisted that it could not be cancelled. Eight staff offered warranties with only one fail and one considered unhelpful. Staff wrongly claimed the policy was a binding contract and could not be cancelled. Which? executive director Richard Lloyd said: "Some high street retailers are making inaccurate and exaggerated claims about extended warranties to get people to purchase cover they may not need. Retailers should make sure their staff provide accurate information so consumers can decide whether to buy an extended warranty. Which? wants the sale of the warranties to be regulated by the Financial Conduct Authority, which would have the power to fine companies for mis-selling. A spokesman for Dixons said: "Our store training is refreshed regularly and includes compulsory training on the legal obligations associated with support agreements. We also conduct independent mystery shops to consistently check legal compliance in terms of selling support agreements and displaying relevant literature in store. Richer Sounds said: "We certainly accept that a percentage of our sales staff did not communicate as clearly as they might have done." Tesco promised to improve its staff training.