The Federal Court of Australia Full Court has rejected appeals by Latitude and Harvey Norman against the original Federal Court decision in ASIC v Latitude Finance Australia and Harvey Norman which declared that certain Harvey Norman ads were misleading and deceptive.
The case related to Harvey Norman advertisements that promoted ‘no deposit’ and ‘interest-free’ payments for the period January 2020 to August 2021. These advertisements did not make clear that a Latitude ‘GO’ Mastercard was required to access the deal of 60-months interest free. In many of the advertisements, there was no reference to the relevant financial product, namely a credit card, or to the relevant issuer, namely Latitude Finance.
For customers who did sign up to the Latitude GO Mastercard, and relied on the 60 months interest free period, were liable for $537 in fees on top of the purchase amount for an establishment fee and monthly account service fees which Latitude could and did vary.
ASIC’s case related to undisclosed conditions for both the payment method and the fees and charges .
The Full Court agreed with the original judge that ordinary and reasonable consumers who saw the representative advertisements would have understood the banner statements in the advertisements to convey the promotional message: that they could purchase eligible goods from a Harvey Norman store at the advertised price of the goods, without paying a deposit, provided they paid the advertised price by 60 equal monthly payments and, provided they paid the 60 equal monthly payments, they would not be charged interest in respect of their purchases or be required to make any other payment in respect of their purchases or undertake any other financial commitment.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
