RUSSELL EMMERSON and KAREN COLLIER
November 20, 2012
News Limited Network
ELEVEN Harvey Norman franchisees are the subject of court action by the national consumer watchdog.
The Australian Competition and Consumer Commission has lodged a claim in the Federal Court alleging the franchisees misled consumers by saying they did not have to give a refund or exchange for goods with a major fault, in contravention of the Australian Consumer Law.
The statement of claim states that staff at some stores allegedly told customers they did not have to provide compensation for goods still covered by the manufacturer’s warranty; that refunds or replacements were not given for certain appliances such as fridges, laptops and mobile phones; or that consumers had to pay a fee for the repair and return of faulty products.
The action, prompted by consumer complaints to the regulator, has been brought against 11 franchisees out of the nearly 200 stores in Australia and not the overarching Harvey Norman company.
The stores in question are located in New South Wales (Camavit in Campbelltown, Gordon Superstore in Gordon), Victoria (HP Superstore in Hoppers Crossing, Salecomp in Sale), Queensland (Bunavit in Bundall, Ipavit in Ipswich, Oxteha in Oxley) and Western Australia (Avitalb in Albany, Mandurvit in Mandurah) and Tasmania (Moonah Superstore and Launceston Superstore).
The stores each face a penalty of up to $1.1 million if found guilty.
In its statement of claim, the ACCC alleges:
THE HP Superstore at Hoppers Crossing told a customer to return a faulty laptop directly to the manufacturer because “If we send it back… there is a cost and you will have to pay it up front” and “it is not up to Harvey Norman to replace your laptop”.
A CONSUMER dealing with the Sale Harvey Norman store was allegedly told four times they could not receive a refund as it was not “company policy”.
THE Launceston Superstore told a customer that “we don’t do refunds or replacements”.
HARVEY Norman at Oxley allegedly claimed “we have different rights to other retailers”.
According to the pleadings, Harvey Norman’s Albany Superstore told a customer that “if it’s a software issue, it wouldn’t be covered”.
The ACCC also alleges Harvey Norman Superstore at Mandurah claimed that Panasonic was charging an $88 fee for the return of a defective camera when there was no such fee or the fee was payable by Harvey Norman.
The pleadings also detail a claim that problems with a product purchased through the Bundall Superstore should be taken up with the manufacturer, Sony, and not the retailer, as it was “still under manufacturer’s warranty”.
The Gordon Superstore allegedly told a consumer: “I will get Samsung to pick it up. You won’t get your refund until Samsung picks it up” and “You are not entitled to a refund”.
Similar claims were made against the remaining stores.
The ACCC alleges misleading and deceptive conduct and is seeking orders including penalties, declarations, injunctions and costs.
No defence has yet been lodged.
The matter is set down for a directions hearing on December 19.
ACCC chairman Rod Sims said the area of consumer guarantees was a national priority for regulators.
“(It) is a matter of particular concern for the ACCC with more than 16,000 contacts from members of the public… so far this year”.
Subscribe to our free mailing list and always be the first to receive the latest news and updates.