2 days Ago By Varun Godinho
Harvey Norman has been hit with a major class action for selling “unnecessary and worthless” extended warranties to tens of thousands customers over the past six years. It’s estimated the company made hundreds of millions of dollars as a result. Melbourne-based Echo Law has issued the claim in the Federal Court on behalf of Harvey Norman, Domayne and Joyce Mayne customers in Australia who were sold the Product Care warranty between 17 September 2018 and 17 September 2024, either online or in-store.
The extended warranties, called Product Care, are sold by Harvey Norman alongside the sale of goods such as televisions, computers and kitchen and laundry products and on average cost 10 to 40 per cent of the product price. “The class action is based on allegations that Product Care offered little or no value, because consumers were already guaranteed the same (or greater) rights under the Australian Consumer Law, for free. As such, we consider that Harvey Norman consumers who paid for Product Care should be entitled to compensation,” said Echo Law in a statement on its website where it has offered a link for those who want to join the class action.
The class action contends that Harvey Norman breached the law with its misleading or deceptive conduct, including unconscionable conduct, by leading customers to believe that the extended warranty would give them additional protection. “Harvey Norman has been making its customers pay extra for rights that they already have for free. It’s a practice that is hugely profitable for the retailer,” said Echo Law senior associate Lauren Meath, according to 9News.
“We have heard from hundreds of Harvey Norman customers who are furious that they’ve paid thousands of dollars for Product Care over the years and for little or no benefit. They feel like they’ve been tricked. “In reality, Harvey Norman is packaging up the obligations it already has to repair, replace or refund faulty products sold in its stores and is selling this to its customers at a premium.
Harvey Norman needs to be held accountable, do the right thing, and refund that money with interest.” While inviting customers in Australia to join the class action, Echo Law has stated that there are no out-of-pocket costs to participate in the claim. It says that even those who have claimed on the extended warranty or whose extended warranty has expired can still participate, as long they purchased it between 17 September 2018 and 17 September 2024.
Echo Law noted that if the class action was successful and financial compensation is recovered from Harvey Norman, it would deduct legal fees and other costs, before disbursing the compensation to group members. This isn’t the first time that Harvey Norman are being pulled up for their warranty programme. Back in 2016, the Australian Competition and Consumer Commission ordered fines of a total of $286,000 against ten Harvey Norman franchisees for “false and misleading representations about consumer guarantee rights.
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