Australia’s corporate regulator has filed a lawsuit against retail behemoth Harvey Norman for allegedly deceptive claims on interest-free purchases.
The Australian Securities and Investments Commission filed the lawsuit in the Federal Court today, claiming that between January 2020 and August 2021, Harvey Norman and the loan provider Latitude Finance Australia marketed “no deposit” and “interest free” payment options.
It is claimed that the advertisements misled viewers by failing to disclose that customers had to use a Latitude Go Mastercard in order to participate in the promotion and by omitting to mention the establishment and ongoing account maintenance fees, which significantly increase the cost of the payment method.
Sarah Court, the deputy chair of ASIC, expressed worry that the advertising didn’t present clients with a whole picture.
“Consumers have the right to make educated decisions.
Credit companies and retail partners like Latitude and Harvey Norman should make sure that all pertinent information about payment options and associated fees is disclosed in their advertisements “She said.
“According to ASIC, these credit cards attracted significant costs over the duration of the 60-month payment term and exposed customers to the risk of racking up additional debt and penalties, as well as potential negative effects on their credit score.
ASIC claims that anyone who made a purchase at Harvey Norman and applied for the credit card after March 16 of last year would be responsible for paying fees of at least AU$537 (NZ$606) over the course of 60 months, in addition to their purchase amount.
Latitude released a statement acknowledging the legal action.
The statement reads, “Latitude takes these claims seriously and has cooperated with ASIC throughout its investigation.”
Considering that the matter is currently before the courts, Latitude is currently analysing ASIC’s claim and won’t be making any more comments.
Harvey Norman has been approached by AAP for comment.
Due to “misleading” advertisements, Harvey Norman was sued in Australia
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