OFT turns spotlight on IT services

The newly-reorganised Office of Fair Trading (OFT) is to investigate consumer IT services and the sale of extended warranties for electrical goods.

The OFT has set up a markets and policy initiatives division comprised of three sections, one to provide advice and expertise, one to lead investigations and one to co-ordinate with government.

The latest investigation recognises that simply buying IT equipment is just the start of the expenditure process. Contract terms, help line charges and printing costs will all come under the microscope.

The £1bn extended warranty market will also be probed. The OFT has already found three-quarters of retailers did not display the prices of warranties. While over half those checked did not display written material on the warranties.

Dixons, which has faced investigations before over its PC pricing and legal action from rival retailers, said in a statement: "Dixons Group, like many other major retailers in this market, endorses and abides by the British Retail Consortium's code of practice covering the sale of extended warranties.

"We look forward to working with the OFT on its study and would urge the OFT to seek wide endorsement of the code."