Harvey Norman (ASX:HVN) shares were up +0.62% to $4.85/sh heading into lunchtime in Sydney on Wednesday – even as Echo Law’s class action against the company kicks off.
Customers who purchased Harvey Norman’s extended warranty product ‘Product Care’ between 17 September 2018 and 17 September 2024 are eligible to join. That goes too for customers at Domayne or Joyce Mayne.
The company is ultimately alleged to have knowingly issued junk warranties to Australian consumers who thereby paid, in essence, for nothing – a breach of Australian Consumer Law (ACL).
ACL is important here – because the Product Care product Harvey Norman sold was already covered by ACL, which Australians are born with an inherent right to be protected by, much like copyright.
In essence: Harvey Norman pocketed cash in exchange for something consumers already had.
According to industry reports, lawyers are representing Australian consumers who collectively made hundreds of millions of dollars worth of purchases for Product Care warranties.
Harvey Norman has not issued any statement on the matter as at lunchtime Sydney time on Wednesday, either ASX-facing or otherwise.
Its last document to hit the bourse was a corporate governance statement on the 9th of September – which could, perhaps, cause a smirk to form.
It’s not the first time Harvey Norman has been told off, either. Back in 2022 ASIC came after Harvey and Latitude Finance Australia over allegations they misled consumers on claims of “interest free” payments.
HVN last traded at $4.85.