I am not PT but I agree with him... although I also understand why the two are getting conflated. In my experience, service contracts cover less than extended warranties and allow for greater discretion by the provider before they can provide coverage. You also get limited recourse if they refuse, unlike warranties. An example here could be electronic systems, audio..etc. Most service contracts I have run into specifically exclude this. Most service contracts also have deductibles depending on the package you select. Finally, a lot of the service contracts require for claims to be reviewed before they can cover a repair. Either way, this is one of the situations where you literally need to read the fine print. Ask for a copy of the contract from the dealer.
I posses Mazda contract booklets for both New and Used CPOs, as I'd indicated elsewhere. I have read both cover to cover. They are quite different. I am specifically discussing New here, which the flavor (top level of coverage) I've purchased covers all vehicle electronics, other wise I wouldn't have purchased it. The CPO version does not, in any flavor. I know this because when I was thinking of purchasing the 'coverage' for the new vehicle, they mistakenly gave me the contract booklet for the CPO and the electronics were excluded. I called the woman after reading the booklet and said the one thing I told you was a must-have coverage item, and you said it was, isn't included in this booklet. She called someone, called me back and emailed me a copy of the 'other' new car booklet. Mistake? Not? In typical dealer fashion, I'd have to say not likely. Don't know, can't say, don't care because I read both of the damn things cover to cover. If you've run in to this, well then, you purchased something mistakenly, or as usually the case, didn't read the print, fine or otherwise, BEFORE signing only to find out AFTER the fact what was, or was not, covered including the circumstances surrounding the coverage and complaining about it later.
As far as what is covered in Mazda's Extended Total Confidence, for new vehicles, it's in plain clear English, if a covered part has failed, it will be replaced. Again, the act/process of negotiating/fighting to have a new car B2B warranty claim covered or negotiating/fighting to have the extended coverage contract claim covered are no different in my mind. I've had to threaten many a dealer to repair things they claim 'normal' when vehicles are still under the factory B2B 'warranty'. I recall a whiny xfer case in a Wrangler that needed replaced and the dealers tech acknowledged it sounded off. Dealer didn't want to hear about it. There's always recourse. The method I find gets results is the 'squeaky wheel getting greased' method. Stating your case publicly at 7-8am in the morning when the dealer is full of people who are also there for service. It boils down to knowing what you're talking about, service manager's reaction to the situation, and your tactics to achieve the results you want, deserve, and have paid for.
So, I'm still not seeing any differences in the terminology, warranty...service contract. The factory B2B is 'free', the extended B2B 'coverage contract' I paid for. Both have written docs detailing what is and is not covered and surrounding circumstances. Only concrete difference I can see.