How does the Consumer Guarantees Act protect consumers from extended warranties?

The Consumer Guarantees Act (CGA) protects consumers by ensuring that their rights are not misled or obscured when it comes to the sale of goods and services. Choosing the correct answer indicates that extended warranties must not mislead consumers about their rights under the Act. This is vital because there are inherent guarantees in the CGA that provide certain rights to consumers, such as the guarantee of acceptable quality and fitness for purpose. If extended warranties falsely suggest that these rights are not applicable or provide coverage beyond those rights, consumers may be misled and could potentially waive protections they already possess under law.

This safeguard helps maintain transparency and fairness in the marketplace, ensuring consumers are fully informed about their legal rights without being unduly influenced by misleading information about additional warranties. Thus, option A accurately reflects the essence of consumer protection provided by the CGA in relation to extended warranties.

Other options do not encapsulate the core function of the CGA effectively with regard to extended warranties. For instance, allowing consumers to receive more than one warranty does not impact the core protections against misleading information. Limiting businesses from offering warranties is impractical and would hinder consumer choice. Lastly, stating that all warranties must be provided free of charge deviates from the nature of warranties, which