ACCC takes Harvey Norman franchisees back to court

Sarah Stowe

The ACCC has re-commenced court proceedings with nine of the Harvey Norman franchisees it found had misrepresented consumer rights back in November 2012.

In April, 10 of the 11 injunctions the ACCC initially applied for against the franchisees were dismissed because they were filed in New South Wales however all stores except for one operate outside of the state.

The consumer watchdog has subsequently issued nine separate proceedings, one for each of the franchisees.

According to a media release on the ACCC website, it has not issued proceedings against Ipavit Pty Limited because the business was deregistered as a company on 19 November 2012.

Rod Sims, chairman, ACCC said “It is important for these matters to be considered by the court. The ACCC will continue to take enforcement action where it believes that retailers or manufacturers have misled consumers about their rights under the consumer guarantee provisions of the Australian Consumer Law.

“Consumers have rights to certain remedies from retailers and manufacturers when goods fail to comply with the consumer guarantee provisions, including that goods are of acceptable quality and fit for the purpose for which they were sold.

“These rights cannot be excluded, restricted or modified,” he added.

He said that the ACCC is taking action against each individual franchisee, and it does not allege Harvey Norman Holdings Limited is involved in the breaches.

The consumer watchdog is seeking a range of court orders against the franchisees, including:

  • Penalties
  • Declarations
  • Injunctions
  • Costs