Lawyers claim it offered no extra protection to consumers
Harvey Norman is facing fresh legal trouble with a class action accusing the retailer of selling extended warranties that provided no additional value beyond existing consumer protections.
The lawsuit, filed by Maurice Blackburn Lawyers in the Supreme Court of Victoria, claims the company misled customers into purchasing its “Product Care” warranties for smartphones, computers, and home appliances. These warranties are also offered by its affiliated stores, Domayne and Joyce Mayne.
According to Maurice Blackburn principal Jarrah Ekstein, Australian Consumer Law already provides customers with the right to refunds or replacements for faulty goods, making the extended warranties unnecessary.
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“Harvey Norman engaged in misleading and deceptive conduct by getting their customers to pay for protections which they already have for free under the Australian Consumer Law. We also allege that Product Care was sold illegally as Harvey Norman did not hold the required Australian Financial Services Licence to offer financial products,” Ekstein said in a press release.
Ekstein also claims that the retailer failed to provide customers with enough information about their legal rights, preventing them from making informed decisions about the purchase of extended warranties.
Peter Singh, the lead plaintiff, said he purchased Product Care to cover a smartphone and security cameras, thinking it would provide extra protection.
"But it was just a waste of money,” he said.
Consumer advocacy group Choice has long warned that extended warranties often duplicate protections already offered by law, likening them to junk insurance. However, a 2023 survey revealed that 32% of consumers had purchased these warranties in the past two years.
Maurice Blackburn’s class action seeks compensation for consumers who bought Product Care from Harvey Norman, Domayne, or Joyce Mayne between September 20, 2018, and September 19, 2024. Affected customers are encouraged to register for updates and information on Maurice Blackburn’s website.
This marks the second class action against Harvey Norman over its warranties in recent months. Earlier this year, Echo Law launched a similar case against the same retailers, alleging they failed to honor warranty obligations for faulty goods.