A class action alleges Harvey Norman misled customers with interest-free promotions that hid thousands in fees. The Federal Court already found the ads deceptive.
The ads said interest-free. The contracts said otherwise. The courts agreed.
Harvey Norman is facing a class action after the Federal Court found its interest-free advertising campaigns were misleading and deceptive.
The ads, broadcast thousands of times across Australian newspapers, radio and television between January 2020 and August 2021, promoted a 60-month interest-free, no-deposit payment plan. What they did not disclose: customers had to sign up for a Latitude GO Mastercard with ongoing fees that inflated the true cost by 15% or more.
Estimated total monthly account service fees recovered by Latitude across the 60-month contracts
Why it matters
This is a case study in what happens when hero advertising copy promises one thing and the fine print delivers another. A customer buying a $2,000 item ended up paying over $2,500 once establishment fees and monthly service charges were added. None of that appeared in the bold text that defined the campaign.
The Federal Court unanimously dismissed the appeals from both Harvey Norman and Latitude Finance in 2025, calling them "barely arguable." The class action, led by Carter Capner Law, is now seeking damages and refunds for affected consumers. A directions hearing was held in the Brisbane Supreme Court on Friday, with the matter returning on 24 June.
For marketers, this is a reminder that promotional claims carry legal weight. The ACCC and the courts are paying close attention to the gap between headline offers and actual terms. If your campaign leads with a price or a financing deal, the conditions need to be just as prominent as the promise.
What to do about it
Audit any buy-now-pay-later or financing partnerships in your marketing. If the promotional headline does not match the customer experience at checkout, you have a compliance problem. Make sure legal review covers not just the fine print but the headline claims that drive the campaign.