Dixons Retail, an electrical retailing and services company, has said it welcomes today's announcement from the Office of Fair Trading (OFT) regarding extended warranties.

The announcement states that major UK electrical retailers have offered legal undertakings to improve the way the extended warranties market works, thereby ensuring fair competition on the market, which is worth around £1bn a year.

The improved measures include improving the information these retailers provide to shoppers as well as the launch of a comparison website.

The OFT believes that the undertakings announced today will resolve any remaining competition concerns.

Dixons, Home Retail's Argos and Comet (formerly owned by Kesa Electricals), the biggest retail providers of extended warranties, have submitted plans which the OFT will review and decide whether to accept.

Dixons Retail said it "supports any initiative that provides customers with greater choice and helps them understand the services we are able to provide to them."

Dixon's share price rose 2.24% to 15.09p by 13:46.

NR

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