Supreme Court confirms extended warranties can be regulated insurance products

The Supreme Court has confirmed that extended warranties on consumer goods can be “contracts of insurance” falling under the regulation of the Financial Services Authority (“FSA”).

In Re Digital Satellite Warranty Cover Limited [2013] UKSC 7, the court found that extended warranties for the repair and replacement of satellite television equipment were regulated insurance contracts for the purposes of the Financial Services and Markets Act 2000.  It upheld winding-up orders secured by the FSA against the providers of the warranties on the grounds that they did not have the necessary FSA authorisation.

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