Harvey Norman (ASX:HVN) has received a declaration from the Federal Court of Australia regarding proceedings initiated by the Australian Securities and Investments Commission.
The company was named alongside Latitude Finance Australia in case number NSD843/2022.
The court found that between January 2020 and August 2021, Harvey Norman and Latitude Finance misled customers with advertisements for a payment method claiming 60 equal monthly payments on eligible goods without deposit or interest.
The court stated that consumers were required to enter into a credit contract associated with a credit card, thereby contravening several sections of the ASIC Act.
A hearing to determine penalties is anticipated to occur post-May 19, 2025.
The company is currently evaluating its options concerning an appeal.
"The company will consider its position carefully before deciding whether to make an appeal," stated Chris Mentis, the company said in a statement.
Harvey Norman is engaged in the integrated retail, franchise, property and digital system business.
Its principal activities include franchisor; sale of furniture, bedding, computers, communications and consumer electrical products in New Zealand, Singapore, Malaysia, Slovenia, Ireland, Northern Ireland and Croatia; property investment; lessor of premises to Harvey Norman, Domayne and Joyce Mayne franchisees and other third parties; media placement, and provision of consumer finance and other commercial loans and advances.
At the time of reporting, Harvey Norman’s share price was $4.54.