Undercover researchers from BBC One's Watchdog show have caught Carphone Warehouse staff misleading customers in an attempt to sell them costly iPhone insurance.

Staff were caught in the act of making false claims about what would happen if the device was stolen and wasn’t insured - staff were trying to sell iPhone customers Carphone Warehouse's own insurance package.

Customers were told that if the iPhone were lost they would have to fork out not just for a replacement device, but would also be forced to fork out for a brand new 18-month contract, to the tune of a cool £630.

This isn't true, according to the Watchdog programme.

Watchdog visited five stores, and was told this lie in three of them. Staff also said the insurance offered by O2 wouldn't cover as much, another untruth.

Carphone Warehouse staff get commission on all the insurance they sell.

The company - which was fined £245,000 last year for breaking the law on selling insurance - said it didn't believe the complaints were "a fair reflection of the experience of thousands of iPhone customers who have received insurance advice in our stores".