Shoppers have better cancellation rights

Retailers will now have to clearly display the price of extended warranties alongside electrical goods.

Shoppers will also have up to 30 days to purchase cover and there will be a 45-day cooling off period.

The changes were delayed to give retailers time to make changes, following a Competition Commission inquiry into the �900m a year market.

The Commission inquiry branded the sale of extended warranties "unfair and uncompetitive."

Consumer groups have long campaigned for a shake-up of the rules.

They objected that shoppers were being pressurised into signing up for the warranties, which can sometimes cost almost as much as the original electrical item.

NEW RULES: IN SUMMARY The price of the extended warranty must be clearly displayed alongside electrical goods Consumers will have 30 days after buying an electrical good to purchase cover Consumers will have 45 days to change their mind and receive a full pro-rata refund Any discounts tied to the purchase of the extended warranty must be available for 30 days

Under the new rules, retailers must make clear that the purchase of a warranty is optional.

The price of the extended warranty must be shown alongside electrical goods not only in shops, but in catalogues, on websites and in print adverts.

People will also have 45 days to change their mind and receive a pro-rata refund.

And where the price of the extended warranty is more than �20, the supplier must inform the consumer of their right to cancel in writing at least 20 calendar days before this 45-day period expires.

Shops will also have to offer any discounts that are offered in conjunction with an extended warranty for 30 days.

Consumer Minister Gerry Sutcliffe said: "From April consumers will be in a much better position to make an informed choice about whether or not to take out an extended warranty when buying an electrical product."

The new rules are set out in "The supply of extended warranties on domestic electrical goods order 2005".