In a significant legal move, Echo Law has launched a class action in the Federal Court of Australia on behalf of tens of thousands of Harvey Norman, Domayne, and Joyce Mayne customers. The action targets the sale of allegedly unnecessary and worthless extended warranties, known as ‘Product Care,’ which were offered to customers between September 2018 and the present day.
Echo Law estimates that customers have collectively paid hundreds of millions of dollars for these warranties, which are now being described as largely ineffective. Harvey Norman announced to the ASX that they intend to “defend the proceedings vigorously.”
What Is the Class Action About?
Harvey Norman’s Product Care is an extended warranty service sold alongside electronics and whitegoods, claiming to offer additional protection if a product is faulty. However, the class action, spearheaded by Echo Law, alleges that Product Care is essentially useless to consumers. The action argues that the protections offered by these extended warranties are already guaranteed under the Australian Consumer Law (ACL), rendering the warranties redundant and deceptive.
Dr. Lauren Meath, a Senior Associate at Echo Law, commented on the frustration felt by many Harvey Norman customers:
“We have heard from hundreds of Harvey Norman customers who are furious that they’ve paid thousands of dollars for Product Care over the years and for little or no benefit. They feel like they’ve been tricked. Harvey Norman has been making its customers pay extra for rights that they already have for free. It’s a practice that is hugely profitable for the retailer.”
Allegations Against Harvey Norman
The central allegation is that Harvey Norman engaged in misleading or deceptive conduct by convincing customers that Product Care provided valuable additional protection. However, as Echo Law points out, consumers already have the right to repairs, replacements, or refunds under ACL if their products are faulty.
The class action also claims Harvey Norman’s sales of these extended warranties constituted unconscionable conduct due to their lack of real value.
Dr. Meath further explained: “When you look at the rights all consumers are guaranteed under the Australian Consumer Law and the long list of fine print exclusions to Harvey Norman’s Product Care, it becomes clear there is nothing substantially ‘additional’ or ‘beneficial’ about this product.”
Consumer Losses
According to Echo Law, the cost of Product Care typically adds between 10 to 40 percent to the price of a product, depending on the type and length of the warranty. For many customers, this has meant paying hundreds or even thousands of dollars for a product protection scheme that provided no additional value over what was already required by law.
The class action aims to recover this money, including interest, for customers who were sold these warranties between September 2018 and the present day.
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Regulatory History
The Australian Competition and Consumer Commission (ACCC) has also been involved in investigating Harvey Norman’s Product Care policies. The ACCC previously accepted a court-enforceable undertaking from Harvey Norman to address concerns over misleading practices related to these extended warranties. Despite this, the current class action claims Harvey Norman continued to engage in misleading and deceptive conduct, as well as unconscionable behavior, by marketing warranties of minimal value.
How to Get Involved
Harvey Norman, Domayne, and Joyce Mayne customers who purchased Product Care extended warranties from September 17, 2018, are encouraged to join the class action. Echo Law is seeking compensation for customers, including a refund of the money paid for Product Care and interest on those amounts. Customers interested in being part of this class action or learning more about it can register through Echo Law’s website.
Supporting Litigation
The class action is backed by CASL, an Australian litigation funder known for supporting consumer protection cases. Siobhan Moore, Senior Litigation Manager at CASL, highlighted the importance of this case:
“This case is an example of how class actions are an important enforcement mechanism for Australia’s consumer protection laws. CASL is proud to support Echo Law’s work to seek remedies for consumers who were allegedly sold junk extended warranties.”
Contact Details
If you or someone you know purchased a Product Care warranty from Harvey Norman, Domayne, or Joyce Mayne between September 17, 2018, and today, you may be eligible to join this class action. For further information, you can visit the Echo Law website: Echo Law – Harvey Norman Class Action
About Echo Law
Founded in 2022, Echo Law is a plaintiff law firm specializing in class actions against large corporations and established interests. The firm’s experienced legal professionals have successfully resolved cases totaling more than $850 million. Echo Law is committed to fighting for individuals and groups who have been wronged by powerful institutions, using their expertise to achieve justice for their clients.
This class action against Harvey Norman, led by Echo Law, aims to provide much-needed compensation for thousands of customers who were allegedly misled into purchasing ineffective and unnecessary extended warranties. If you have been affected, you can register your interest in joining this case and help hold Harvey Norman accountable for what Echo Law alleges is a breach of consumer trust.
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