About the Class Action
Learn about the Harvey Norman & Latitude Finance class action and how we're fighting for consumer rights.
The Defendants
Harvey Norman Holdings Ltd
A major Australian furniture and electronics retailer. ASX-listed company operating stores nationally through a franchise model.
Latitude Finance Australia
Major consumer finance provider, formerly known as GE Money. Provides credit products through retail partners including Harvey Norman.
How the Promotion Worked
Harvey Norman advertised "60 months interest-free" financing on purchases. To access this promotion, consumers were required to apply for a Latitude GO Mastercard—a credit card that came with establishment fees, monthly account fees, and high interest rates on other purchases. These costs were not adequately disclosed in the advertising.
The Advertising Campaign
The "60 months interest-free" promotion was advertised extensively across television, radio, and newspapers. The messaging was consistent across all channels, prominently featuring the interest-free claim while failing to adequately disclose the associated fees and credit card requirements.
Actual Ads Used in the Campaign
Large "60 MONTHS INTEREST FREE" headline with "No Deposit, No Interest" checkmarks. Fine print at bottom mentions fees, charges, conditions and exclusions apply.
"60 Months Interest Free" plus bonus gift card up to $500 on purchases. Fine print mentions Latitude Finance credit provider details.
Same gift card promotion with added urgency — "Offer Ends Tuesday" banner. Fine print details gift card tiers by spend amount.
Gift card tiers displayed ($50 to $300 based on spend). Fine print at bottom: "Credit provided by Latitude Finance Australia."
Clean white background variant showing "No Deposit, No Interest" with 60 equal monthly payments. Latitude Finance fine print at bottom.
"No Deposit, No Interest with 60 Equal Monthly Payments until March 2025" plus bonus gift card. Latitude Finance credit provider details in fine print.
Blue background variant with gift card tiers ($50–$500). Fine print shows gift card conditions and Latitude Finance credit licence number 392145.
Second variant of the "Offer Ends Tuesday" promotion with gift card up to $500.
"No Deposit, No Interest with 60 equal monthly payments until May 2025." Urgency element: "Offer Ends Tuesday." Gift card tiers in fine print.
In-store display showing laptops and computers with "60 Months Interest Free" promotional banner at bottom of screen. Fine print barely visible.
Harvey Norman store interior with large "SHOP NOW" overlay. Latitude Finance credit provider fine print at bottom of ad.
Large "LIMITED TIME ONLY" text creating urgency. Small print: "Credit provided by Latitude Finance Australia ABN 42 008 583 588 Credit Licence 392145."
Financial Impact on Consumers
Consumers were charged a $25 establishment fee and monthly account service fees of $5.95 (increased to $8.95 from 16 March 2021) over a 60-month contract period. For many consumers, these undisclosed fees represented a significant proportion of the total purchase price.
The Core Allegations
The class action alleges that the "60 months interest-free" advertising was misleading because it failed to adequately disclose critical information:
Forced Credit Card Signup
Consumers were required to apply for a Latitude GO Mastercard to access the promotion—this was not clearly disclosed in advertising.
Hidden Establishment Fees
One-time establishment fees were charged when signing up for the card, adding to the "interest-free" purchase cost.
Ongoing Monthly Fees
Monthly account service fees were charged throughout the 60-month period, adding significant costs over time.
High Interest on Other Purchases
High interest rates applied to any other purchases made on the Latitude GO Mastercard.
ASIC's Role
The Australian Securities and Investments Commission (ASIC) commenced proceedings against Harvey Norman and Latitude Finance in October 2022, alleging breaches of Australian Consumer Law and the ASIC Act.
ASIC Alleged Breaches Of:
- Section 12DA — Misleading conduct in financial services
- Section 12DB — False or misleading representations
- Section 12DF — Certain conduct in relation to financial services
ASIC is seeking pecuniary penalties, adverse publicity orders, and injunctions against both defendants.
"This is an important win for consumers. Businesses must ensure that their advertising is not misleading, and that important information about fees and charges is clearly disclosed."
Court Findings
Justice Yates delivered a landmark judgment finding that Harvey Norman and Latitude Finance engaged in misleading and deceptive conduct. Key findings include:
"The promotion was a 'half-truth'"
The court found that advertising "interest-free" without disclosing the fees was misleading because it told only part of the story.
"Consumers were entitled to rely on the plain wording"
The court affirmed that consumers should be able to trust advertising at face value without needing to investigate hidden terms.
"Consumers should not be expected to second-guess the advertised terms"
The burden is on businesses to disclose material information, not on consumers to discover it.
On the Appeals
"Barely arguable"
The Full Federal Court described the defendants' appeal grounds as having little merit.
On Delays
"Delay caused by unmeritorious applications"
The court criticised the defendants for prolonging proceedings with weak arguments.
Legal Basis
The class action is founded on breaches of Australian consumer protection laws:
Australian Consumer Law — Misleading and Deceptive Conduct
Businesses must not engage in conduct that is misleading or deceptive, or is likely to mislead or deceive consumers. This includes advertising that creates a false impression about the true cost of a product or service.
ASIC Act Section 12DA — Misleading Conduct in Financial Services
Prohibits misleading or deceptive conduct in relation to financial services. The Latitude GO Mastercard is a financial product, and the promotion of it was found to be misleading.
ASIC Act Section 12DB — False or Misleading Representations
Prohibits false or misleading representations about financial products, including representations about the price or value of services. The "interest-free" claim was found to be misleading.
ASIC Act Section 12DF — Certain Conduct in Relation to Financial Services
Prohibits conduct that is liable to mislead the public as to the nature, characteristics, or suitability of financial services. The promotion failed to adequately disclose the true nature of the credit product.
Carter Capner Law
Carter Capner Law is a leading Australian law firm with over 80 years of experience in class actions and consumer protection. We are committed to achieving justice for consumers affected by misleading conduct.
Trusted by Australians to fight for justice and fair compensation.