Staff at the Carphone Warehouse have been caught "misleading" customers about the iPhone, the BBC reports.

The Beeb sent in undercover researchers from Watchdog who discovered that the Carphone sales staff made "false claims" about what would happen if a phone was stolen and not insured.

The BBC suggests this confusion was deliberate in order to push the customers into taking out Carphone Warehouse's insurance plans, an area the retailer has been fined for breaking the rules with before.

Carphone Warehouse has said there may be "some element of confusion among an isolated number of sales consultants" and that overall it was a "small number of complaints".

Watchdog viewers reported that that they'd been told if they lost their iPhone they would need to get an entirely new 18 month contract - for a minimum of £630, whereas really they would just have to buy a new handset.

In three out of five stores visited by the undercover researchers, they were told the same.