Harvey Norman fined over ‘false and misleading’ claims
The Federal Court has ordered four Harvey Norman franchisees to pay a total of $116,000 for making false or misleading representations to customers.
One of the franchises has since ceased trading
In a statement announcing the fines, the ACCC said that the Court found that each franchisee had made a number of false or misleading representations to consumers about their consumer guarantee rights.
“These penalties send a strong message to all businesses, including franchisees, that they must not mislead consumers about their rights to repair, replacement or refund for faulty goods under the Australian Consumer Law,” ACCC Chairman Rod Sims said.
“Complaints about consumer guarantees represent a quarter of the consumer protection complaints that the ACCC receives each year, The ACCC has moved from raising awareness of the law to taking enforcement action where it believes consumers have been misled about their rights under the consumer guarantee provisions of the ACL.”
In his judgment, Justice Middleton stated that: “Processes to ensure that, if goods were not of acceptable quality when sold to consumers, consumers can obtain a remedy for faulty goods represent a cost on the retailer’s business. Retailers may need to incur costs to maintain a culture of compliance with the ACL, including by supervision of staff”.
Three of the stores have been ordered to display in-store corrective notices and implement a consumer law compliance program. The fourth store ceased trading last year.
The ACCC said it awaits judgement in proceedings against another six Harvey Norman franchisees for similar conduct.