The Full Federal Court has unanimously dismissed ‘barely arguable’ appeals brought by Latitude Finance Australia (Latitude) and Harvey Norman Holdings Ltd (Harvey Norman) over misleading conduct and false or misleading representations they made in a national advertising campaign promoting a 60-month interest free and no deposit payment method for goods purchased at Harvey Norman stores.
The advertisements were published and broadcast thousands of times across Australia between January 2020 and August 2021 in newspapers, on radio and on television.
ASIC was concerned the advertisements masked that consumers were required to take out a credit card, such as the Latitude GO Mastercard, to purchase goods, and were liable to pay monthly account service fees and, up to 15 March 2021, also establishment fees.
In dismissing the appeals at the hearing on 28 August 2025, the Full Court agreed with the assessment and conclusions of the trial judge that these undisclosed conditions were material.
In their Honours’ written judgment delivered on 3 September 2025, Justices O’Bryan, Cheeseman and Bennett stated it was ‘regrettable that the final determination of remedies in this proceeding has been delayed by the unmeritorious applications for leave to appeal’ and that ‘the decision of the primary judge is not attended by any real doubt and that the draft grounds of appeal lack merit and are barely arguable.’
In confirming that ‘the promotional message was misleading’, the Full Court rejected submissions that ordinary and reasonable consumers ‘would know it was too good to be true’ and observed that ‘there is no reason for a consumer to doubt or second guess the simple terms of the advertised offer.’
Their Honours went on to hold, ‘the promotional message was clear and very attractive to consumers. It concerned the financial terms on which goods could be purchased at Harvey Norman stores. In our view, ordinary and reasonable consumers would have assumed that the offer made in the advertisements was stated accurately, particularly in light of Australia’s strong consumer protection laws.’
ASIC Deputy Chair Sarah Court said, ‘This is an important win for consumers. ASIC took this case because we believed many consumers were unaware of the financial arrangements they were entering into, and they deserved to be fully informed.
‘This decision reinforces the importance of truthful advertising,’ the Deputy Chair said.
The matter will be listed for a hearing on a date to be set, where ASIC will seek pecuniary penalties, adverse publicity orders, an injunction and costs.
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Background
On 4 October 2022, ASIC commenced proceedings in the Federal Court against Latitude and Harvey Norman, alleging breaches of sections 12DA, 12DB and 12DF of the Australian Securities and Investments Commission Act (2001) (Cth), by pursuing a national advertising campaign, which failed to adequately disclose the true scope and cost of the promoted payment method (22-270MR).
ASIC alleged that the advertisements failed to disclose that, to use the interest free payment method, consumers had to have, or apply for and be approved for, an eligible Latitude credit card and use that credit card or the account linked to it to purchase the goods, and that consumers were liable to incur an associated establishment fee (until 15 March 2021) and monthly account service fees (if the statement balance was $10 or more).
On 18 October 2024, Justice Yates delivered his reasons, finding that Latitude and Harvey Norman had breached the law (24-228MR). On 5 November 2024, Justice Yates made declarations as to their liability and orders timetabling the matter for a further hearing on relief.
On 19 November 2024, Latitude and Harvey Norman each filed an application for leave to appeal the declarations. Latitude and Harvey Norman also brought an interlocutory application to vacate the timetabling orders for the hearing on relief and orders to that effect were made on 10 December 2024. The appeal hearing was conducted and concluded on 28 August 2025, with the Full Federal Court granting leave but dismissing the appeals.
ASIC’s Moneysmart website has information for consumers about the real costs of interest free deals and how to find help to get debt under control.
Example of an extract of one of the newspaper advertisements
The Adelaide Advertiser, Thursday 23 April 2020
