Class action launched after Harvey Norman and Latitude $55m fine

Carter Capner Law says its class action against Harvey Norman and Latitude Finance is now the avenue for consumers to seek compensation, after the Federal Court ordered the companies to pay a combined $55 million penalty over a misleading advertising campaign.

The Brisbane law firm filed the class action in December last year on behalf of consumers who bought goods under the promotion and were issued a Latitude GO Mastercard.

"The court has now confirmed that Australians were entitled to take the 'interest-free' message at face value," said Peter Carter, director of Carter Capner Law.

The $55m penalty

The Federal Court ordered Harvey Norman to pay $35 million and Latitude Finance $20 million after finding the companies misled consumers through a national "60 months interest-free, no deposit" campaign that ran across newspapers, radio and television between January 2020 and August 2021.

ASIC's case centred on advertisements that did not make it clear that customers had to apply for a credit card, including the Latitude GO Mastercard, to access the offer, and that they would be liable for monthly account service fees and, until 15 March 2021, establishment fees. Both companies were ordered to run corrective advertising on their homepages for 90 days.

Class action details

Carter said the class action focuses on recovering fees and charges billed to consumers through the credit card arrangement.

"The $55 million penalty reflects the seriousness and scale of what occurred, with millions of Australians exposed to a widespread misleading retail finance promotion," he said. “The penalty, though, does not compensate the affected consumers.”

Consumers who purchased goods from Harvey Norman or Domayne between 1 January 2020 and 11 August 2021 under the "60 months interest free" promotion, and were issued a Latitude GO Mastercard, can register for the class action at cartercapner.com.au/class-action/.