Harvey Norman outlets fight single trial in ACCC battle

Harvey Norman franchisees are resisting efforts by the consumer watchdog to initiate a single court action to hear allegations of misleading conduct.

In November the ACCC announced it would take legal action against eleven Harvey Norman franchisees, scattered throughout WA, Queensland, NSW, Victoria and Tasmania, for allegedly ripping off customers on warranties and repairs. 

It claimed the outlets told customers they were not obligated to fix damaged goods outside of their nominated return period, had refused to service goods covered by the manufacturer’s warranty, wouldn't refund or return particular items such as large appliances or low-cost products, and told customers a fee was required for faulty product repairs and returns.

In a directions hearing in the Federal Court in December, lawyers for the 11 defendants argued to have their cases heard individually in each home city.

The ACCC wants the case to be tried as one to “avoid multiplicity”, but the defendants said the cases are too different to be lumped together.

Justice Edmonds agreed the case appeared to concern “totally unrelated respondents”. The case will be heard in March.

HP under fire

Last year the ACCC initiated proceedings against HP for a similar matter as part of a crackdown on breaches of consumer law. It said it had received over 16,000 complaints from customers regarding product guarantees in 2012 following a national consumer guarantee awareness campaign.

The vendor allegedly told customers they could not get replacements for products until they had been repaired multiple times, and also told customers returns would only be provided at HP’s discretion.

According to the ACCC, HP also advised customers the warranty period for its products were limited to an “express” period, and asked for a fee for any repairs or replacements for faulty products after that period.

Companies found to be in breach of Australian consumer law face penalities of up to $1.1 million.

List of Harvey Norman franchises at issue:

Avitalb, in Albany, Western Australia
Bunavit, in Bundall, Queensland
Camavit, in Campbelltown, New South Wales
Gordon Superstore, in Gordon, New South Wales
HP Superstore, in Hoppers Crossing, Victoria
Ipavit, in Ipswich, Queensland
Launceston Superstore, in Launceston, Tasmania
Mandurvit, in Mandurah, Western Australia
Moonah Superstore, in Moonah, Tasmania
Oxteha, in Oxley, Queensland, and
Salecomp, in Sale, Victoria.