Conflict of interest: Harvey Norman faces claims of misleading consumers
Retailer Harvey Norman and Latitude Finance have been sued by the Australian Security and Investments Commission over alleged misleading advertising.
Gerry Harvey's retail firm has been fined by the consumer watchdog over misleading advertising. (Image: 60 Minutes)
The case revolves around the promotion of interest free payment methods, ASIC said.
It alleges that over a period of 18 months from January 2020, advertisements which promoted a payment method of no deposits and interest free periods were misleading because they did not disclose that consumers could only use the interest free method if they applied for and used a Latitude GO Mastercard.
ASIC also alleges that the ads misrepresented the true costs of the methods because they did not disclose establishment fees and monthly account service fees.
ASIC deputy chair Sarah Court said the commission was concerned the ads did not give consumers the full picture.
“These credit cards, ASIC alleges, attracted substantial fees over the course of the 60-month payment term and exposed customers to the risks of incurring further debts and charges as well as potentially affecting their credit rating,” she said.
“Consumers have the right to make informed choices. Credit providers and retail partners such as Latitude and Harvey Norman should ensure that their advertising clearly discloses all important information about payment methods and any fees.”
ASIC said it was seeking declarations, pecuniary penalties and injunctions against Harvey Norman and Latitude.
