NARDA Responds to Consumer Reports Claims
Nov 22, 2006
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The North American Retail Dealers Association (NARDA) said it finds Consumer Reports' national ad campaign on extended service warranty programs to be misleading, a disservice to consumers, and a threat to NARDA members who sell these programs.

NARDA will respond with several initiatives. In partnership with industry veteran and warranty expert Gary Chaves, NARDA developed member information to be used at point-of-sale with consumers. The information will help sales associates respond to negative feedback they receive from consumers as extended service warranties are discussed during the shopping experience.

In addition, NARDA responded with a letter to the editor of Consumer Reports challenging the publication's position on extended service warranties.

"We think that Consumer Reports slanted the data they collected and did not present a balanced point of view," said Tom Drake, NARDA president and CEO. "We are not going to let our members be taken to the woodshed for offering their customers the opportunity for protection. Extended warranties are not for everyone and certainly retailers make money on selling them. However, a simple fact of life is that everything eventually breaks, whether it's the human body, a refrigerator or a television. Extended warranties offer consumers the opportunity to have peace of mind as well as save time and money."

NARDA will continue to provide education and training on extended service programs at NARDA University, The 2007 Service and Retail Convention (SRC) and the NARDA VISION program.

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