Australian Court Upholds Ruling on Misleading Harvey Norman Ads

The Full Court of the Federal Court of Australia has upheld a prior decision against Latitude Financial and Harvey Norman, maintaining that certain advertisements were misleading.

These ads, which ran from January 2020 to August 2021, promoted ‘no deposit’ and ‘interest-free’ payment options but failed to disclose the necessity of acquiring a Latitude GO Mastercard to avail the offer.

The promotional efforts did not sufficiently clarify the connection to the credit card or its issuer, Latitude Finance, misleading consumers about essential terms of the deal.

This ruling is significant as it reaffirms the importance of transparency in advertising, particularly about financial products with complex conditions. Consumers who obtained the Latitude GO Mastercard believing they could benefit from the interest-free period were instead subject to additional costs, including a $537 fee. These undisclosed fees comprised an establishment charge and ongoing monthly service fees, impacting the financially vulnerable the hardest.

The outcome underscores the Australian Securities and Investments Commission’s (ASIC) commitment to protecting consumers by ensuring promotional materials don’t obscure the true costs and conditions associated with financial agreements. Businesses are reminded that their advertisements must be clear and straightforward to avoid misleading potential customers, particularly when promoting financial products or services.

Moving forward, this legal precedent may influence how Australian corporations approach advertising strategies, particularly in the financial and retail sectors. Companies are likely to review their marketing content to ensure compliance with consumer protection laws. The decision also serves as a warning that failure to disclose complete terms clearly can lead to legal action and damage to reputations.

Published:Wednesday, 8th Oct 2025
Source: Paige Estritori

Share this news item:

Finance News

Gold Reaches Unprecedented Heights Amid Global Instability

08 Oct 2025: Paige Estritori

In an unprecedented turn of events, gold prices have surged to nearly $US4000 per ounce, positioning the precious metal as Australia’s second most valuable export. This dramatic price escalation is driven by a complex interplay of factors including cuts in US interest rates and global geopolitical tensions, leading investors to seek the security of stable, tangibly-valued assets like gold. - read more

Australian Court Upholds Ruling on Misleading Harvey Norman Ads

08 Oct 2025: Paige Estritori

The Full Court of the Federal Court of Australia has upheld a prior decision against Latitude Financial and Harvey Norman, maintaining that certain advertisements were misleading. These ads, which ran from January 2020 to August 2021, promoted ‘no deposit’ and ‘interest-free’ payment options but failed to disclose the necessity of acquiring a Latitude GO Mastercard to avail the offer. - read more

Regulatory Pressure on Investment Governance Following Fund Collapses

08 Oct 2025: Paige Estritori

The Australian government has directed the Australian Securities and Investments Commission (ASIC) to reassess current financial resource stipulations for managed investment scheme (MIS) operators. Concurrently, the Australian Prudential Regulation Authority (APRA) has advised platform trustees to enhance governance standards. These actions stem from the collapse of the Shield and First Guardian master funds, which led to significant investor losses. - read more

Click for more Finance News

Finance Articles

Essential Tips for Choosing the Right Personal Loan in Australia

Personal loans are a type of financing option that individuals can use to fund various personal expenses. Unlike mortgages or car loans, they aren't earmarked for a specific purpose, giving borrowers more flexibility in how they use the funds. These loans are usually unsecured, which means you don’t have to provide collateral to borrow money. - read more

The Ultimate Cheat Sheet for Aussie Borrowers: Top Loan Comparison Strategies

In the dynamic world of Australian finance, securing a loan can be a pivotal move for individuals seeking to achieve their financial goals. Whether it's for purchasing a dream home, expanding a business, or simply consolidating debt, the importance of smart loan comparison cannot be overstated. With an array of lending products available, borrowers are often faced with a bewildering choice. That's why equipping yourself with powerful loan comparison strategies is not just important, it's essential. - read more

Top Mistakes to Avoid When Saving for Your First Home

Embarking on the journey to homeownership is both exciting and daunting. It's a significant milestone that requires careful planning and disciplined saving. For many Australians, buying a first home represents a dream come true, and it's essential to approach it strategically. - read more

Knowledgebase

Amortization Schedule:
A table that provides details of each periodic payment on a loan, including the amount going towards principal and interest.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised credit representative of Saccasan Pty Ltd, Australian Credit License 386297. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party intermediaries, insurers and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for vaidating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.

Australian Court Upholds Ruling on Misleading Harvey Norman Ads

Australian Court Upholds Ruling on Misleading Harvey Norman Ads

Share this news item:

Free Loan Eligibility Assessment