The Centre plans extended warranty for off-season, gifts electronics—but with a catch
Summary
The consumer affairs ministry is pushing for a warranty extension on electronics bought as gifts or during off-season sales, but conditions apply.
New Delhi: You buy an air conditioner during a festive sale, but weeks later, when it’s finally installed, you realize the warranty clock started ticking from the purchase date. The consumer affairs ministry wants to change that by extending the warranty period for such electronics bought as gifts or during off-season sales, but only if they’re installed by authorized service centres within a set window, according to two people aware of the matter.
The proposal, currently under discussion between the consumer affairs ministry and electronics manufacturers, aims to address a common grievance faced by buyers of high-value appliances requiring installation, like air conditioners, washing machines, and refrigerators.
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“It also seeks to address the concerns of consumers who install these products at a different location from where they were purchased or delivered," said one of the people.
Off-season months, October to February and monsoon from July to September, are popular for buying air conditioners and cooling appliances due to steep discounts. These products are often stored for weeks or months before being installed, potentially shortening the effective warranty period.
Under the proposal, the warranty period would not begin until installation, provided it is completed within two to three months from the date of purchase. If the product is not installed within this timeframe, the warranty will commence from the purchase date, said the person.
“It is a fair decision and a right move," B. Thiagarajan, managing director of Blue Star Ltd told Mint. “There will not be any impact on the manufacturers since key components such as compressors and electronics already carry more than a five-year warranty."
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“We are holding stakeholder consultations. During the last such meeting held in early May, most manufacturers agreed to the proposal and expressed readiness to apply the warranty from the date of installation for products bought during off-season sales or gifted during weddings and other customary occasions where exchange of gifts is common," said the other person cited earlier.
However, to prevent misuse, consumers will be required to declare the intended installation location and purpose of purchase, whether as a gift or off-season buy, at the time of purchase.
This information will be shared with the relevant area service provider to ensure proper servicing and prevent disputes, a senior executive from a leading air-conditioner manufacturing firm said on the condition of anonymity. The executive was present at the meeting chaired by consumer affairs secretary Nidhi Khare.
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The consumer durables sector, which contributes 0.6% to India’s GDP, is expected to grow at an 11% compound annual growth rate to reach ₹3 trillion by 2028-29. Industry players have largely welcomed the proposal, but some concerns persist.
A senior executive from LG, who participated in the discussions, noted that manufacturers have raised concerns about coverage for products damaged due to consumer mishandling. “The ministry has assured that it will find a solution to this issue," the executive said.
Consumer groups have also expressed support for the proposal.
“It’s a well-thought-out plan by the government to address the gaps in consumer rights," said Manish K Shubhay, partner at The Precept-Law Offices.
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"The government should also make it mandatory that if the product is found defective, it should be replaced from the city where it has been installed, not from where it was purchased. Additionally, the area of jurisdiction should be shifted to the city where the product is installed instead of the purchasing city. This will provide major relief to consumers who often run from pillar to post to get their cases resolved in different consumer courts," Shubhay added.
