By Robyn Wuth

Angry customers are taking on retail giant Harvey Norman in a class action over claims they were misled by false promises of interest-free loans, only to be slugged with hefty fees and charges.

A directions hearing over the upcoming legal battle was held in the Brisbane Supreme Court on Friday, and will return to court on June 24.

Carter Capner Law launched the challenge on behalf of customers after the Australian Securities and Investments Commission (ASIC) successfully prosecuted Harvey Norman and credit provider Latitude Finance Australia in the Federal Court.

”The consumers seek the payment of damages and refunds of the price paid for the goods acquired as a result of the defendants’ misleading conduct,” Carter Capner Law director Peter Carter told AAP.

The class action seeks to recover financial losses, including fees and charges.

Consumer watchdog ASIC had earlier taken the retail giant and Latitude to court over the store chain’s national ad campaign which promoted “no-deposit” and “interest-free” payment methods between January 2020 and August 2021.

In October 2024, the Federal Court found them guilty of misleading people with the ads, saying customers entered a “fundamentally different financial arrangement” than the one promoted.

The ads failed to disclose that customers were required to use a credit card, such as the Latitude GO Mastercard, to purchase goods, liable to pay monthly account service fees and, up to mid-March 2021, establishment fees.

An appeal by Harvey Norman and Latitude was dismissed in September 2025.

The class action has now been launched in the wake of the Harvey Norman ad campaign which was published and broadcast thousands of times across Australia in newspapers, on radio and on television.

Mr Carter said to access the offer, customers were required to sign up for a Latitude GO Mastercard, a continuing credit contract, and were not offered a no-charge instalment plan as they had expected.

”Typically, consumers purchasing a $2000 item might end up paying over $2500 once accumulated fees were included, and none of this had been disclosed in the bold ‘hero’ text that defined the campaign,” he said.

The class action comes after the Federal Court unanimously dismissed the “barely arguable” appeals brought by Latitude and Harvey Norman in 2025.

The court dismissed submissions that ordinary and reasonable consumers would know the offer was too good to be true.

ASIC Deputy Chair Sarah Court said at the time that the appeal’s dismissal was an important win, reinforcing the need for truthful advertising.

Penalties in the federal case have not been imposed, with the consumer watchdog seeking a $50 million fine.

Harvey Norman faces a separate class action relating to the sale of allegedly extended warranties.

The retail giant has been contacted for comment.