Harvey Norman franchisee fined

harvey normanThe Federal Court has ordered a Harvey Norman franchisee to pay a total of $52,000 in penalties for making false or misleading representations regarding consumer guarantee rights, in proceedings brought by the ACCC.

The court found sales staff at the Harvey Norman Superstore Bundall in Queensland made 10 false or misleading representations, when they said the retailer had no obligation to provide a product remedy and the consumer would need to pursue the manufacturer’s warranty directly with the manufacturer and, the store could not assist further unless the consumer paid for some or all of the cost of the repair.

As a result of ACCC legal action, 10 Harvey Norman franchisees have been ordered to pay a total of $286,000 for making false or misleading representations regarding consumer guarantees.

“Products sold in Australia come with a consumer guarantee under the Australian Consumer Law that they will be of acceptable quality. Faulty products must be repaired, replaced, or a refund must be provided by the retailer,” ACCC acting chair, Dr Michael Schaper said.

“This penalty is a timely reminder to all businesses, whether large or small, that they must not mislead consumers about consumer guarantee rights under the Australian Consumer Law,” Schaper said.

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