Staff at the UK's biggest mobile phone retailer, Carphone Warehouse, have been caught misleading customers about Apple's popular iPhone handset.

Undercover researchers from BBC One's Watchdog found staff made false claims about what would happen if a phone was stolen and had not been insured.

This was in the hope customers would take out the store's own insurance.

The firm said there could be "some element of confusion among an isolated number of sales consultants".

But Carphone Warehouse added it did not believe that the "small number of complaints" were "a fair reflection of the experience of thousands of iPhone customers who have received insurance advice in our stores".

The findings come just a year after Carphone Warehouse was fined £245,000 by the Financial Services Authority for breaking the rules on selling insurance.

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