Harvey Norman and Latitude slugged with record $55m penalty over misleading ads

Harvey Norman and Latitude Finance have been ordered to pay a combined $55 million in penalties after the Federal Court found the companies misled consumers through a nationwide "60 months interest-free, no deposit" advertising campaign.

Harvey Norman was fined $35 million, while Latitude Finance was ordered to pay $20 million. The penalties are among the largest secured by ASIC for misleading conduct involving financial products and services.

The Court also ordered both companies to display corrective advertising prominently on their website homepages for 90 days.

Court finds consumers were misled

The case centred on a national advertising campaign that ran between January 2020 and August 2021 across newspapers, radio and television, reaching millions of Australians.

ASIC argued the advertisements failed to make it clear that customers had to apply for a credit card, including the Latitude GO Mastercard, to access the offer. Consumers were also required to pay monthly account service fees and, until 15 March 2021, establishment fees.

Justice Michael O'Bryan said the companies had prioritised commercial interests over consumers.

In his judgment, he said Harvey Norman and Latitude had "put sales and their commercial interests above the interests of consumers, and also distorted the markets in which competing goods and finance are offered."

He also found "the compliance processes of both defendants were wholly inadequate to prevent the contravening conduct."

Given the size of both businesses, Justice O'Bryan described that failure as extraordinary, adding it "is particularly striking in the case of Harvey Norman".

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Harvey Norman fined more heavily

While the Court found both companies were equally responsible for the misleading advertisements, Harvey Norman received the larger penalty.

Justice O'Bryan said the retailer had shown "a different level of contrition" and noted that "public statements made by Harvey Norman's Chairman show a disregard for the potential harm suffered by consumers from Harvey Norman's misleading conduct."

He concluded that "A higher penalty is warranted to deter repetition and to motivate Harvey Norman to improve its compliance processes".

ASIC says ruling sends strong warning

ASIC Chair Sarah Court said the penalties reinforce the need for businesses to be transparent when promoting finance offers.

"Consumers were entitled to know that this offer involved more than simply paying for their purchase in 60 instalments," she said.

"The advertising encouraged consumers into an ongoing credit arrangement that carried additional costs and obligations.

"Today's outcome sends a strong message that businesses must give consumers a clear and accurate picture of the products they are promoting and the costs that come with them."

Long-running legal battle

ASIC launched proceedings against Harvey Norman and Latitude in October 2022, alleging the campaign failed to adequately disclose the true cost of the promoted payment method.

In October 2024, the Federal Court found both companies had engaged in misleading conduct and made false or misleading representations. The pair appealed that decision, but the Full Federal Court dismissed the appeals in September 2025.

Consumers who took up the GO Mastercard between 16 March and 11 August 2021, used the 60-month interest-free offer and repaid over the full term could pay at least $537 in fees on top of the purchase price.

The latest ruling finalises the penalty phase of one of ASIC's highest-profile consumer finance enforcement actions.