The Australian Securities and Investments Commission has obtained Federal Court penalties of AUD 35 million against Harvey Norman Holdings and AUD 20 million against Latitude Finance Australia for misleading advertising of a 60-month interest-free, no-deposit payment method. The combined AUD 55 million penalty is ASIC’s highest for misleading conduct and false or misleading representations involving financial products and services. The national campaign, which ran from January 2020 to August 2021, failed to make clear that consumers had to obtain a credit card and could incur monthly service and establishment fees. Some consumers paying off a purchase over 60 months faced at least AUD 537 in fees in addition to the purchase price. The court found both companies equally responsible and described their compliance processes as wholly inadequate, but imposed a higher penalty on Harvey Norman based on its level of contrition, public statements and the need to improve compliance. Both companies must also display immediately visible corrective advertising on their website home pages for 90 days.
Australian Securities & Investments Commission2026-07-28
Australian Securities and Investments Commission obtains record AUD 55 million penalties over misleading interest-free advertising
The Australian Securities and Investments Commission has obtained record combined penalties of AUD 55 million against Harvey Norman and Latitude Finance Australia over misleading interest-free advertising. The campaign obscured credit card requirements and associated fees, while the companies’ compliance processes were found to be wholly inadequate. Both must display corrective advertising on their website home pages for 90 days.