Investigation into extended warranties costs Dixons management time

Retail giant Dixons group admitted an inquiry into extended warranties had taken up management time.

But the Competition Commission's 15-month investigation failed to dent a strong trading update that saw the electrical specialist push its way to the top of the FTSE 100 yesterday.

Britain's biggest electrical goods retailer was up 5.6% to a 13-month high as Christmas sales beat expectations after a profit warning last year.

UK sales for the eight weeks ended 10 January increased by 7% in total and 4% on a like for like basis.

But chairman Sir John Collins said: "The Competition Commission's 15-month long investigation into extended warranties has continued to absorb a significant amount of management time.

"We are encouraged that the final recommendations reflect many of the group's long-standing policies and practices governing the sales of extended warranties, and that the commission has concentrated on practical and proportionate measures to ensure the spread of best practice across the industry."

The Competition Commission unveiled measures to stamp out mis-selling of extended warranties on domestic appliances in July last year, under which retailers would have to give consumers information on the price and duration of warranties, as well as information about the insurance provider