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Harvey Norman sued over ‘worthless’ extended warranties

Extra warranties sold to Harvey Norman customers replicated existing legal rights, the lawsuit says.

Extra warranties sold to Harvey Norman customers replicated existing legal rights, the lawsuit says. Photo: AAP

Another retailer has been accused in court of selling “unnecessary and worthless” extended warranties.

Echo Law announced on Wednesday that it was launching a class-action Federal Court lawsuit on behalf of customers of Harvey Norman and its spinoffs Domayne and Joyce Mayne who bought the warranties from September 2018 to the present day.

It follows the launch in December, of a similar lawsuit in the Supreme Court of Victoria by Maurice Blackburn Lawyers on behalf of JB Hi-Fi customers who bought extended warranties on products between January 1, 2011 and December 8, 2023.

Both lawsuits allege that the retailers’ “product care” extended warranties were of little or no value because customers already had the same rights for free under Australian Consumer Law, which generally entitle consumers to a repair, replacement or refund if they buy a defective product.

JB Hi-Fi has said it takes its compliance with legal obligations seriously, believes it has complied with the law and intends to vigorously defend the claim.

Harvey Norman has been approached for comment.

Echo Law senior associate Dr Lauren Meath said the firm had heard from hundreds of Harvey Norman customers who were furious they had paid thousands of dollars for product care warranties over the years for little or no benefit.

“They feel like they’ve been tricked,” Meath said.

The lawsuit alleged Harvey Norman engaged in “misleading or deceptive conduct as well as unconscionable conduct, by leading customers to believe that the extended warranty would give them additional protection they would not have otherwise had,” she said.

Topics: Consumer
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