HOUSTON (CN) – Conn Appliances uses deceptive high-pressure tactics to sell extended warranties on brand-name electronics and appliances, then refuses to honor them, the State of Texas claims in Harris County Court. Texas says it’s received more than 2,000 complaints. Conn has 69 stores and $900 million in annual sales.
Texas claims Conn and Conn’s Inc. train employees to use high-pressure tactics and misrepresentations to push the extended warranties, which it manages to sell with 49 percent of its appliances.
It claims that Conn does not inform customers that it’s selling the warranties for a third party, and that Conn takes a commission on each warranty it sells. The warranties account for 5 percent of Conn’s annual sales revenue, Texas says.