Carphone Warehouse has dismissed criticisms that its staff tricked iPhone customers into signing up for insurance packages as ‘isolated’ incidents.
The claims were made on BBC 1’s Watchdog programme last Wednesday. It was alleged that Carphone store staff were making false claims to iPhone customers about their insurance cover if the phones were stolen.
Viewers complained to Watchdog that they were told they would have to buy an entirely new 18-month contract if they lost their iPhone, at a minimum cost of £630. In reality, the customer only needs to replace the handset and can continue with their contract should they lose their device.
A Carphone spokeswoman said that the ‘unique nature’ of the iPhone could be causing ‘confusion among an isolated number of sales consultants’. She added: ‘We do not believe that the small number of complaints received by Watchdog is a fair reflection of the experience of thousands of iPhone customers who have received insurance advice in our stores.’
Some members of staff were also caught falsely claiming Carphone’s iPhone partner, O2, offers insurance that covers less.
Staff receive £8 every time they sell insurance to a customer. It’s the same amount for selling a contract handset.
Carphone workers receive commission on all insurance sales. The findings come just a year after the Financial Services Authority fined the retailer £245,000 for breaking rules on selling insurance.