JB Hi-Fi class action: What you need to know about Maurice Blackburn case

A class action launched against JB Hi-Fi is believed to be a first of its kind in Australia. See what it means for you.

Law firm Maurice Blackburn has lodged a class action against JB Hi-Fi.

A class action has been lodged against JB Hi-Fi – described as the first of its kind in Australia – over accusations the tech retailer’s extended warranties were worthless.

In a statement to the ASX, JB Hi-Fi said it would “vigorously defend” the proceedings.

“JB Hi-Fi takes compliance with its legal obligations very seriously and considers that it has complied with relevant laws at all times,” the company said.

The class action is being seen as a test case for extended warranty products offered by many of Australia’s largest electronics, furniture and other retailers.

We take a look at what it means.

WHAT IS THE CLASS ACTION FOR?

Law firm Maurice Blackburn lodged the class action in the Victorian Supreme Court on December 8, alleging JB Hi-FI’s extended warranties were of little to no value because customers already held the same rights for free under Australian Consumer Law.

“These warranties are in most cases little more than a junk add-on to consumers’ purchase of the household goods they actually want,” Maurice Blackburn principal Miranda Nagy said.

“JB’s extended warranties expire just three to six years after purchase, but they add substantially to the cost.

“Our case alleges they added nothing meaningful to the strong rights for repair, replacement or refund under the Australian Consumer Law rights that consumers already enjoy.”

Hundreds of thousands of Aussies are estimated to have bought extended warranties in the time period. Picture: Getty Images

WHY?

Maurice Blackburn’s class action alleges that JB Hi-Fi used misleading or deceptive conduct or unconscionable conduct in selling the extended warranties, including by telling customers either directly or by implying, that the extended warranties: operated for longer than the rights under the Australian Consumer Law; provided benefits that the Australian Consumer Law did not; and were of value to customers.

The law firm said JB Hi-Fi also failed to give customers important information about their rights under the Australian Consumer Law, which they needed to make a properly informed decision about whether to buy an extended warranty.

WHAT ARE THE WARRANTIES?

Referred to as Extended Care Pans or Extra Care Plans at different times, the extended warranties were offered to JB Hi-Fi customers who purchased products including electronics, home appliances or home entertainment.

Maurice Blackburn is seeking compensations for all customers who bought one of these extended warranties between January 1, 2011 and December 8, 2023.

The class action also alleges that JB Hi-Fi’s customers bought the extended warranties on the basis of a mistake about their value.

HOW MANY PEOPLE MAY BE ELIGIBLE?

Maurice Blackburn estimates hundreds of thousands of Australians may have purchased these warranties from JB Hi-Fi in that time.

The law firm said it’s too early to estimate the total amount to be claimed but it would likely amount to a multimillion-dollar case.

WHAT SHOULD PEOPLE DO IF THEY BOUGHT AN EXTENDED WARRANTY?

Maurice Blackburn said eligible customers did not need to sign up to the class action, explaining they would be automatically added to the class action group if they purchased a warranty in the relevant period.