Warranties for white goods to start from date of installation, not purchase

New Delhi: In a move set to benefit consumers nationwide, the warranty period for electronic appliances will now start from the date of installation rather than the date of purchase. 

This new policy will apply to all electronic appliances requiring installation, such as air conditioners, geysers, washing machines, refrigerators, and water coolers.

The change, announced by the Central Consumer Protection Authority (CCPA) under the consumer affairs ministry on Saturday, aims to align with global best practices. 

Currently, warranties start from the purchase date, often reducing the effective warranty time for consumers.

The CCPA has directed all consumer durable manufacturers to work towards implementing this change and submit their views within the next 15 days.

“A stakeholders’ consultation was held on Friday with all major electronic appliance manufacturers, wherein the matter of starting warranty periods from the date of installation rather than the date of purchase was discussed,” a statement from the ministry said.

At the meeting, chaired by CCPA chief commissioner Nidhi Khare, electronic appliance manufacturers were asked to ensure that consumers are clearly informed about the starting point of the warranty period.

“It should not be the case that consumers learn about the warranty details only after purchasing the product and companies’ should ensure that global best practices are followed in India,” Khare said. “Also, consumer grievances relating to the warranty period must be addressed proactively and promptly."

This would reduce the shortfall in the warranty period as consumers can only begin using the product after it has been installed on their premises, it said. “The objective is to ensure consumers get the full warranty period by considering the date of installation as the starting point,” the statement added.

The meeting was attended by representatives from consumer durables companies Reliance Retail, LG, Panasonic, Haier, Croma, and Bosch.

"The electronic appliance manufacturers have also “agreed” to address the issue proactively, keeping in view the concerns of consumers," it said.

Safeguarding consumer interests

The appliance makers were also asked to develop measures to prevent abuse of this mechanism and ensure consumer interests were adequately safeguarded.

Section 2(9) of the Consumer Protection Act ensures that consumers have the right to be informed about the quality, quantity, potency, purity, standard, and price of goods, protecting them against unfair trade practices.

Meanwhile, the industry sees no major challenges in implementing the plan. "It will not have much impact as installations are generally completed within one to three days," said Manjeet Singh Chawla, general manager, planning & control, LG Electronics.

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According to an Invest India report, the white goods market is projected to exceed $21 billion by 2025, growing at a compound annual growth rate (CAGR) of 11%. Domestic manufacturing currently contributes approximately $4.6 billion on average to this industry.

The air conditioner market in India is estimated to increase to $9.8 billion by FY26 from $3.8 billion in FY21, growing at a CAGR of 20.8%. The refrigerator market is projected to surge to $6.7 billion by FY26 from $3.8 billion in FY21, with a CAGR of 9.5%. The dishwasher market is expected to increase to $93.5 million by FY26 from $45.6 million in FY21, at a CAGR of 10.8%.

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