The Bureau of Household Goods and Services (BHGS) investigates violations of the Electronic and Appliance Repair Dealer Registration Law and Regulations, including sections of the Civil Code and Government Code - such as those involving the sales and administration of protection plans.
A protection plan, also known as a service contract or extended warranty, is a written agreement that a business will provide a service for a period of time. Complaints about a protection plan purchased as an extended or supplemental warranty on a product can be filed with BHGS. BHGS does not regulate the sale of electronics and appliances.
For complaints related to home warranties or product/phone insurance, contact the California Department of Insurance.
Helpful Tips Before You Buy a Protection Plan
- Read Before You Buy
- Read and understand the contract before you sign. Be clear about what it does and does not cover, its duration, and your responsibilities as the buyer.
- If the product comes with a manufacturer's warranty, make sure the protection plan offers additional benefits - such as a longer protection period, coverage for more items or costs, or it offers replacement where the manufacturer's warranty only offers repair.
- Understand the process to file a claim, how long it takes, and what happens if a product can't be repaired.
- Confirm that what was advertised is written down in the plan coverage.
- You Have a Right To…
- See the terms and conditions of the protection plan before agreeing to buy.
- Cancel and receive a full refund within 30 days after you receive a protection plan that covers home electronics and major appliances, if no claim was made against the protection plan.
- Cancel and receive a full refund within 60 days after you receive a protection plan that covers other products, such as furniture, if no claim was made against the protection plan.
- Cancel the protection plan and receive a partial refund if the deadline for a full refund has passed.
- See the name and address of the party responsible for paying claims.
All this information must appear in your written contract.
- Understand the Jargon
- Service Contract Seller – The person who sells you the contract.
- Service Contract Holder – That's you!
- Service Contract Administrator – The person or company you contact to arrange for repairs or to pay a claim.
- Obligor – The person or company that has promised to make the payments if you make a claim.
- Check the License
Anyone who sells or administers protection plans in California must be licensed by BHGS.