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The sale of extended warranties that offer protection already available under the law should be prohibited or restricted. Presently, extended warranties generally provide the same protection as provided by law. Extended warranties should only be permitted if the warranty offers protection above and beyond that of the law. In the current form, extended warranties are a scam and are potential fraud.

At the very least, merchants should disclose to consumers what is already covered by law when selling extended warranties. The disclosure should be explicit and verified disclosure should be mandated. Similar to when selling general insurance.

# Public Policy