Harvey Norman Hit With Class Action Over Junk Warranties

WatchNerd on 18/09/2024 - 16:11
Last edited 18/09/2024 - 16:14

Harvey Norman (Extended Warranties) Class Action

Echo Law has commenced a class action on behalf of consumers who were sold an extended warranty at the time they purchased goods from Harvey Norman (including Domayne and Joyce Mayne), either in store or online, between 17 September 2018 and 17 September 2024.

The extended warranties, called Product Care, are sold by Harvey Norman alongside the sale of goods such as televisions, computers and kitchen and laundry products.

The class action is based on allegations that Product Care offered little or no value, because consumers were already guaranteed the same (or greater) rights under the Australian Consumer Law, for free. As such, we consider that Harvey Norman consumers who paid for Product Care should be entitled to compensation.

Professionals can register for the class action here.

Electrical & Electronics

Related Stores

Harvey Norman
Harvey Norman

Comments

  • jv on 18/09/2024 - 16:15
    +4

    and 17 September 2024.

    📅

  • MS Paint on 18/09/2024 - 16:15
    +4

    Sounds like a great service. Not.

    • BewareOfThe Dog on 18/09/2024 - 19:51
      -1

      I did well out of PC over the years, and they are a lot easier to deal with than they were 25 years ago.

      However, one loophole that worked for me, was when a customer brought their computer back, and the hard drive had died. IC Frith would have the repair done under 'Extended Warranty', however most drives at the time from Seagate, Maxtor and Western Digital had 3 year warranties, so I'd send them away, under warranty, and have replacement drives arrive, which I would use or resell (with a new 3 year warranty). Made up for the low pay I had at the time.

      • buckster on 19/09/2024 - 10:01

        Username checks out

  • jv on 18/09/2024 - 16:18
    +8

    If they win, I bet the lawyers get to keep just about all of it after settlement…

    • Cluster on 18/09/2024 - 17:12
      +4

      The reward to plaintiffs will be a $50 discount card for Harvey Norman extended warranties

      • jv on 18/09/2024 - 17:14
        +3

        Lawyers will probably take half of those too…

  • parsimonious one on 18/09/2024 - 16:24
    +11

    Good, I hope HN lose big time

    • jv on 18/09/2024 - 16:28
      +2

      Why?

      • Bruceflix on 18/09/2024 - 16:36
        +27

        Anger over having to pay GST on imported items <$1000.
        Or, anger over Gerry getting millions of tax payers money whilst making record profits during Covid.
        Or, Gerry just being a pompous twat.
        Or, JbHifi fanboi

          • Bruceflix on 18/09/2024 - 16:54
            +7

            @jv: Not me. I just don't shop there.

  • mbck on 18/09/2024 - 16:30
    +1

    Just a matter of time since jb got done

  • Gunnar on 18/09/2024 - 16:42
    +4

    About bloody time! I hope they get screwed over!

    Regards,

    Norman Ross Fanboi

    • Jimothy Wongingtons on 18/09/2024 - 18:28
      +1

      Can’t believe Norman Ross still got shooters out here

      • BewareOfThe Dog on 18/09/2024 - 19:53
        +1

        Though when Alan Bond took over Norman Ross, he had Gerry removed. I think this was caused GH to be bankrupt?

      • Gunnar on 18/09/2024 - 20:51
        +1

        If there’s anyone who I could rely on to get a pop culture reference from 30+ years ago it would be you brother!

        • BewareOfThe Dog on 18/09/2024 - 22:28
          +2

          I had an original gi joe, plus planet of the apes dolls, plus airfix, timpo, esci, britains, tamiya and scanlens cards.
          All are gone but I still have my original wild willy, which i like to show off, as well as my new improved Wild Willy 2. ;)

    • BatsRule on 19/09/2024 - 21:03

      rember the harvey norman "We're Gonna Beat Ya" advert?

  • Jimothy Wongingtons on 18/09/2024 - 16:53
    +3

    Nice

  • Drakesy on 18/09/2024 - 17:17

    Thankfully haven't stepped foot in a store for over a decade.
    JBHifi were equally as guilty.

    Last time i bought an amplifier off JB the salesperson (without consulting me) knocked $200 off the price and replaced it with a $200 junk extended warranty - assumed it was so he could get that sweet sweet commission.

    Luckily didn't have to return for a refund, would've been royally pissed.

    • coffeeinmyveins on 18/09/2024 - 17:25

      The margin on extended warranty products (notice they aren't called "insurance products") is infinitely higher than the actual product.

      So by knocking $200 off the product, they'll loose a few dollars overall but they make a killing on the extended warranty.

      The commission rates on these protection plans can be well over 50-70%. Money printers.

  • coffeeinmyveins on 18/09/2024 - 17:24

    They're called "junk policies" in the US and there are more regulations coming in to prevent this sort of crap.

    unfortunately i doubt those people that paid 100's for these policies will see much of it, and even if they did, HN has already invested the money and will come out on top overall.

    It's just the cost of doing business to them.

    • owduck on 18/09/2024 - 18:21
      +2

      Kind of amazing actually how the perception of the USA is very pro-business and it's the bastion of the free market, but the consumer protections there are among the strictest in the world. We have Australian Consumer Law sort-of administered by the ACCC, who have minimal power to do anything, and sometimes ASIC, while the US has the FTC, FCC, FDA, DHHS and others to uphold all their different laws covering different kinds of consumer protections.

      (Yes, we have the TGA, FSANZ and a couple of others, but none of them have the teeth of their US counterparts. A lot of our product safety here is thanks to improvements forced onto manufacturers in the US or EU.)

      • lgacb08 on 18/09/2024 - 20:42
        +1

        Lol no, the us is shit in all term, a few years back they were talking about forcing airlines to include taxes and fees into one single airfare, guess what, that thing has been here before you were born. Don't know what cocktail you've been drinking mate.

  • Jimothy Wongingtons on 18/09/2024 - 17:59
    +1

    Any word on why it starts from that date? Product care been around for many more years than that

    • rompastompa on 18/09/2024 - 18:21
      +3

      Unfortunately, you are not presently eligible to be part of this class action if your extended warranty was purchased outside of the period between 17 September 2018 and 17 September 2024. This is because, due to statutory time limits, this class action has been brought on behalf of people who purchased an extended warranty at any time in the six years prior to the commencement of the proceeding only.

      • Jimothy Wongingtons on 18/09/2024 - 18:28
        +1

        Thanks mate

        • BewareOfThe Dog on 18/09/2024 - 18:31

          Checking our receipts now.

          Only 3 can be lodged on the website, and the rest emailed.

    • BewareOfThe Dog on 18/09/2024 - 18:30
      +3

      It used to called Extended Warranty, up until a decade and half ago. Underwritten by IC Frith, and had been since the early 90s. 1800-810118 has been used since back then.

      Best thing about working for HN at the time was , getting this at staff price, whuch was I think @4 to 8% of the Price you paid, as well as the length of the PC. Most of the things I bought during my 'tenure', I paid extra for PC,on most things. After I left HN, I would haggle the price, as I know the sales person has a target.

      I bought an M1 Macbook Pro, and it was struggling with 8GB of ram on Music applications. Earlier this year 'it died'. It took 2 weeks to be evaluated by their approved agent, and the Money went towards an M2 with 24GB of Ram and 1TB SSD

      Anything $400 and below, did not need to be sent away, and the staff member would contact PC/ICF and get it approved on the spot, then re-sell a new item with PC, so in some ways it was more like rental (if you knew how to play the game). My partner paid $398 for an Epson Ecotank 7 years ago, and when it gets near the end of it's cycle/ink, next printer. We're on Ecotank #3 (though we now have 2).

      I feel sorry for all those people that paid full price for 'piece of mind'.

      I liked the system in some ways, but it was unnnessary E-waste.

  • Ghost47 on 18/09/2024 - 18:19
    +3

    They should have no issue with paying their legal bills considering they took $22m of taxpayer money and only paid back $6m despite record profits.

    • jv on 18/09/2024 - 19:24

      Pretty sure you wouldn't return government paid money either if you didn't have to…

      • BewareOfThe Dog on 18/09/2024 - 19:54

        Robodebt?

        • jv on 18/09/2024 - 20:08

          Did you return it?

      • Ghost47 on 18/09/2024 - 20:08

        I’ve only received HECS as “government paid money” which I repaid in full. Never been on welfare either when I haven’t worked, lived off savings so you’re wrong.

        • jv on 18/09/2024 - 20:09

          HECS is a loan.

          • Ghost47 on 18/09/2024 - 20:12

            @jv: So how are you sure I wouldn’t pay back money then? Do you know me in person? Do you think everyone out there is corrupt and dishonest?

            • jv on 18/09/2024 - 20:15

              @Ghost47:

              So how are you sure I wouldn’t pay back money then?

              Intuition…

              • Ghost47 on 18/09/2024 - 20:16

                @jv: Right, so all the comments I’ve made pointing out what’s wrong with the world would drive me to commit the same acts by the very people who make the planet a bad place to live. Your intuition sucks.

            • jv on 18/09/2024 - 20:15

              @Ghost47:

              Do you think everyone out there is corrupt and dishonest?

              It wasn't corrupt and dishonest.

              The money was not a loan.

              • Ghost47 on 18/09/2024 - 20:19
                +1

                @jv: Why did they choose to give back $6m when they were given $20m then? Their profits were $462m during the pandemic. They were pressured politically to give ALL the money back. Stop defending dishonesty and corruption.

                • jv on 18/09/2024 - 21:07
                  -1

                  @Ghost47:

                  Why did they choose to give back $6m when they were given $20m then?

                  How much were they required to give back?

  • BewareOfThe Dog on 18/09/2024 - 18:52
    -1

    Crazy thing is one of the companies that broke this is Channel 9, not too mention News Ltd, plus Fairfax. All 3 media companies generally rely on HN as one of their biggest partners in regards to advertising and funding, in one sector or another, especially given that we are into week 2 in the NRL Finals, and possibly AFL.
    HN may cut back or pull advertising all together, given they have reported it.

  • BewareOfThe Dog on 18/09/2024 - 19:33
    -1

    Here are a few interesting things to consider?
    1. Can you get a refund on Warranties, where you already had the item repaired/replaced?
    2. What happens to existing items under Product Care, and should you obtain a refund, if they are still current?
    3. Any refunds issued, will they come out of the pocket of current franchisees, who maybe responsible for Warranties sold by previous franchisees?

  • JIMB0 on 18/09/2024 - 20:03
    +3

    I don't many on here will be victims, it's been common knowledge for a long time that these warranties are worthless.

    • Gunnar on 18/09/2024 - 21:27

      Are you underestimating the power both HN and extended warranty has on the population aged 60-70 and over?

      https://getyarn.io/yarn-clip/2c954ccf-ddc5-4ff8-bb0d-30703bb…

    • BewareOfThe Dog on 18/09/2024 - 22:34

      I luckily benefited quite a few times.
      There were a few times i wish i had it on items. Like my ipad 5 that was struggling, though, or my galaxy tablet that samsung wouldn't repair under warranty, because the firmware was jail broken.

  • donkcat on 18/09/2024 - 21:34
    +2

    They are also being sued by ASIC over misleading advertising regarding the the interest free loans and no deposit, busy times for HN lawyers.

    • jv on 18/09/2024 - 21:38
      -1

      also being sued by ASIC

      Did ASIC purchase one of these warranties ?

  • pegaxs on 18/09/2024 - 22:46
    +3

    lol… good. Suck a fat one, Gerry, you arse clown.

  • Mugsy on 19/09/2024 - 07:39

    Interesting… will be monitoring this one!

  • AssociatedHardlyNormal @ Harvey Norman on 19/09/2024 - 08:40
    +2

    🍿🍿🍿

  • afah0447 on 19/09/2024 - 10:19
    +2

    Junk health insurance is much worse. Paying $50 a fortnight for absolutely nothing!

  • disturboed on 20/09/2024 - 17:03

    Sorry to all you who are wishing the worst for Harvey Norman and this class action (brought by a private law firm, not the government), but Harvey Norman wont lose.

    When they introduced the product care product, they actually took it to the ACCC and had them go through it and basically sign off on it. According to the ACCC, it's actually an "over and above" product, that is it provides more benefits to the consumer than the consumer rights bestowed in ACL. This is why it changed dramatically years ago and went from "extended warranty" to "product care".

    The JB HiFi product though is completely different and does not offer anything over and above ACL rights and is a "junk policy".

    • AssociatedHardlyNormal @ Harvey Norman on 21/09/2024 - 09:50
      -1

      ☝️

Login or Join to leave a comment
Login Join