Harvey Norman is facing a lawsuit over claims it engaged in misleading and deceptive practices by selling extended warranties described as a waste of money.
Maurice Blackburn Lawyers filed a class action against the retailer in the Supreme Court of Victoria, alleging that the extended warranties, marketed as “Product Care,” offer no real additional value to consumers beyond existing protections under Australian Consumer Law.
Details of the Allegations:
- Extended warranties, sold as Product Care, are available at Harvey Norman and affiliated stores Domayne and Joyce Mayne.
- These warranties are commonly purchased for smartphones, computers, home appliances, and home entertainment products.
- The lawsuit argues these warranties provide no benefits beyond what Australian Consumer Law already guarantees.
Claims by Lead Plaintiff:
- Peter Singh, the lead plaintiff, claims he was misled into purchasing the warranty for a smartphone and security cameras, describing it as a “waste of money.”
Objective of the Class Action:
- The lawsuit seeks compensation for customers who bought Product Care from Harvey Norman, Domayne, and Joyce Mayne between September 20, 2018, and September 19, 2024.
Statements from Maurice Blackburn Lawyers:
- Maurice Blackburn principal Jarrah Ekstein alleges Harvey Norman engaged in misleading conduct and withheld critical consumer rights information.
- Ekstein notes that consumers are already entitled by law to refunds or replacements for faulty products within a reasonable timeframe.
- The lawsuit further accuses Harvey Norman of illegally selling the warranties without holding the required Australian Financial Services License.
Ekstein emphasizes that if customers were aware these extended warranties offered nothing beyond their existing legal rights, they likely would not have purchased them. The class action seeks compensation for consumers misled into buying warranties without genuine value.
Harvey Norman has not yet provided a comment regarding the lawsuit.
