UK electrical retailers charge more for warranties than their counterparts in other countries, but comparatively less for products.
The findings came from a report produced for the Competition Commission, which is preparing to issue recommendations to the Department of Trade and Industry on the sale of electrical warranties.
PA Consulting conducted the research, which revealed that the price of extended warranties in the UK on selected white and brown goods, adjusted to account for variations in overall consumer prices, was almost£40 on average. In Denmark, France, Holland and the US, the average price was below£30.
However, British electrical retailers also sold cheaper goods than those in Denmark, France and Holland, and equalled the US. According to PA's adjusted model, average UK prices were about£275, beating the US. The report said: '(The UK) also offers the greatest scope of terms and conditions of all the countries under study.'
It added: 'It is difficult to identify the relative value of one offering compared with another and, in turn, make a rational judgement.'
The Competition Commission said in a separate statement that UK shoppers should be provided with more information about warranties, the likelihood of a product requiring repairs and the cost of repairs.
Evolution Beeson Gregory retail analyst Nick Bubb said of the hypothetical remedies: 'The Competition Commission's bark may yet be worse than its bite.'
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