Retailer Harvey Norman (ASX:HVN) and its wholly-owned subsidiary Yoogalu are facing a second class action lawsuit over allegations that they sold extended warranties lacking real value for customers.
The first lawsuit, filed by Echo Law earlier this week, represents customers who purchased extended warranties from September 2018 to the present.
Maurice Blackburn has now initiated additional proceedings concerning the 'Product Care' warranties sold by Harvey Norman and its subsidiary stores, Domayne and Joyce Mayne.
The warranties continue to be promoted to consumers when purchasing items like smartphones, computers, home appliances, and home entertainment products.
"HNHL considers that each of HNHL and Yoogalu has complied with all relevant laws at all times and intends to defend the proceedings vigorously," the company said in a statement.
The companies are preparing to assert their compliance and defend their position in court.
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 $4.95.