The ACCC has relaunched court action against nine Harvey Norman Holdings Limited
(ASX:HVN) franchisees for allegedly misrepresenting consumer rights.
It comes after the Federal Court in New South Wales ruled ten injunctions filed by the corporate watchdog, be dismissed because they were filed in a state where the outlets had no presence.
The ACCC has now started new, separate proceedings against the nine franchisess removed from the initial proceedings.
The alleged misrepresentations differ in each case but claims include that the franchisee had no obligation to provide remedies for damaged goods still covered by the manufacturer’s warranty.
The watchdog did not allege that Harvey Norman Holdings Limited was involved in the misrepresentations but the ACCC is seeking court orders including penalties, declarations, injunctions and costs against each of the nine franchisees.
Harvey Norman generated a net profit of $82.6 million in the first half of the current financial year.
