Harvey Norman and Latitude to appeal misleading advertising ruling

Ashley Regan
By Ashley Regan | 20 November 2024
 
Source: ASIC

Latitude Finance and retailer Harvey Norman Holdings have applied to the Federal Court for leave to appeal against its recent court ruling.

Justice Yates in October found that the companies made false or misleading representations in an advertising campaign for a 60-month interest free and no deposit payment method.

Corporate regulator ASIC launched the legal action two years ago seeking pecuniary penalties.

ASIC was concerned the advertisements masked the fact consumers were required to take out a credit card, such as the Latitude GO Mastercard, to purchase goods. The advertisements were published between January 2020 and August 2021.

ASIC alleged in the proceedings that Latitude and Harvey Norman contravened the ASIC Act by pursuing a national advertising campaign in newspapers, and on radio and on television stations across Australia, which ASIC alleged failed to adequately disclose the true scope and cost of the promoted payment method.

The court found the advertisements’ statement of the payment method was presented as a complete statement, when it was far from complete.

Latitude Finance and Harvey Norman announced the appeal on the final day they were allowed to file an application to appeal.

A hearing to determine any penalty is likely to be scheduled after May 19 next year. 

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