Hundreds of Australian shoppers have united in a major class action lawsuit against retail behemoth Harvey Norman, alleging they were systematically misled by seemingly attractive 'interest-free' finance deals.
The legal action, filed in the Federal Court, claims the prominent retailer engaged in deceptive conduct by failing to properly disclose the severe financial risks and crippling fees associated with its promoted payment plans.
The Core of the Allegations
At the heart of the lawsuit is the claim that customers were enticed by promotions for 'interest-free' periods, typically lasting 60 months. However, the fine print allegedly contained a devastating catch: if the balance was not paid in full by the end of the term, customers were retrospectively hit with exorbitant interest charges dating back to the original purchase.
Many claimants state they were never adequately warned about this critical condition, believing the plans to be a simple, cost-free way to budget for large purchases like furniture and electronics.
A Widespread Pattern of Grievance
The case consolidates the experiences of hundreds of individuals from across Australia who report similar stories of financial shock and distress. One claimant recounted being charged over $1,500 in backdated interest on a sofa, while others found themselves trapped in a cycle of debt for items they believed were already paid off.
The law firm behind the action, Echo Law, argues that Harvey Norman's conduct potentially breaches the Australian Consumer Law by not ensuring its promotions were clear, accurate, and not misleading.
Harvey Norman's Response and the Road Ahead
A spokesperson for Harvey Norman has stated the company intends to vigorously defend the proceedings, maintaining that its consumer finance practices are compliant with all relevant regulations.
This case is being closely watched by consumer advocacy groups and the retail sector alike, as it could set a significant precedent for how 'interest-free' credit offers are marketed and explained to customers nationwide.
