The encyclopedia · Advertising & PR · Marketing decision · 2020–2026
Harvey Norman advertised interest-free payments while hiding the credit card
Harvey Norman and Latitude promoted 60 no-deposit payments — but hid a credit card and extra fees; the Federal Court imposed A$55M in penalties.
Harvey Norman Holdings Ltd · Latitude Finance Australia · 2026-07-28
What happened
From January 2020 to August 2021, Harvey Norman and Latitude advertised a payment method for eligible goods as 60 equal monthly payments with no deposit and no interest. The campaign appeared in newspapers and on radio and television and reached millions of Australians.
The advertisements did not clearly disclose that customers had to take out a Latitude credit card, such as the Latitude GO Mastercard, to use the offer. That credit arrangement carried monthly account-service fees and, until 15 March 2021, establishment fees.
The Federal Court ruled in 2024 that both companies had engaged in misleading conduct and made false or misleading representations. The Full Federal Court dismissed their appeals in September 2025, leaving the liability findings intact.
On 28 July 2026, the Federal Court imposed penalties of A$35 million on Harvey Norman Holdings and A$20 million on Latitude Finance Australia. The companies were also ordered to publish corrective advertising on their home pages for 90 days.
Why it happened
- The headline payment promise made the purchase look like a simple 60-month instalment plan while the essential credit-card requirement appeared outside the main message
- The credit card added ongoing account-service fees and, for part of the campaign, establishment fees that changed the real cost and obligations
- Harvey Norman and Latitude treated sales conversion as the priority in a national campaign for a financial product, leaving material conditions easy to miss
- Both companies appealed the liability findings, prolonging a dispute that ended with the Full Federal Court dismissing the appeals
The lesson
If a promotion requires a financial product, name that product in the headline. A payment promise that hides the credit arrangement is not transparent just because the terms contain it.
Aftermath
The Federal Court imposed A$35 million on Harvey Norman Holdings and A$20 million on Latitude Finance Australia on 28 July 2026. Both companies had to publish corrective advertising prominently on their website home pages for 90 days.
Sources
- Federal Court judgment imposing penalties — ASIC PDF
- Court rules Harvey Norman and Latitude advertising misled consumers — ASIC
- Full Federal Court dismisses Latitude and Harvey Norman's appeals — ASIC
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