Carphone Warehouse misled iPhone buyers over insurance risks

Carphone Warehouse, the sole retail partner in the UK selling the iPhone on the O2 network, has been found mis-selling cellphone insurance in an undercover investigation for the BBC’s consumer-rights programme Watchdog.  Prompted by shoppers frustrated by Carphone Warehouse staff’s hard-sell tactics, researchers for the programme went undercover into stores; in three out of five they were told that, should they lose or have stolen their iPhone without taking out insurance, they would not only have to buy a replacement handset but sign up to a second contract.  In fact, the new iPhone would continue on the old contract.

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