September 18th 2024.
Harvey Norman, a well-known retailer, is facing a class action lawsuit due to their sale of extended warranties that have been deemed "unnecessary and worthless." This issue has affected tens of thousands of customers over the course of six years. The claim, filed by Echo Law in the Federal Court, represents individuals who have purchased the Product Care warranty from Harvey Norman, Domayne, and Joyce Mayne between September 2018 and the present day. It has been estimated that the company has made hundreds of millions of dollars from this practice.
Product Care is an extended warranty that is sold with various products such as electronics and whitegoods. This warranty is meant to provide added protection in case there is a fault with the product. The cost of the warranty ranges from 10 to 40 percent of the product price, depending on the item and the length of the coverage. However, the class action alleges that this warranty offers no true value to customers as it only provides rights that are already guaranteed under the Australian Consumer Law.
Echo Law senior associate Lauren Meath, who is representing the claim, shares that they have heard from numerous Harvey Norman customers who are outraged by the fact that they paid thousands of dollars for Product Care and received little to no benefit. She states, "They feel like they have been deceived by Harvey Norman's actions." Meath goes on to explain that the retailer has been profiting greatly from this practice of selling unnecessary warranties to customers who already have these rights for free.
The class action accuses Harvey Norman of breaching the law through their misleading and deceptive conduct, including unconscionable conduct. This is due to their practice of leading customers to believe that the extended warranty would offer them additional protection, when in reality, it only covers what they are already entitled to. Meath states, "Harvey Norman needs to take responsibility, do the right thing, and refund the money with interest."
This is not the first time that issues have been raised regarding Harvey Norman's Product Care and their selling practices. The Australian Competition and Consumer Commission (ACCC) has previously identified potential misleading conduct and overlap with existing consumer rights. The class action is seeking compensation for anyone who has purchased Product Care from Harvey Norman, Domayne, or Joyce Mayne since September 17, 2018, as well as a refund of the money paid for the warranty and interest.
9News.com.au reached out to Harvey Norman for comment on the matter.
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