Harvey Norman sued over 'worthless' extended warranties

Another retailer has been accused in court of selling "unnecessary and worthless" extended warranties.

Echo Law announced on Wednesday that it was launching the class-action Federal Court lawsuit on behalf of Harvey Norman, Domayne and Joyce Mayne customers who purchased the warranties from September 2018 to the present day.

In December, Maurice Blackburn Lawyers launched a similar lawsuit in the Supreme Court of Victoria on behalf of JB Hi-Fi customers who bought extended warranties on products between 1 January 2011 and 8 December 2023.

Both lawsuits allege that the retailers' "product care" extended warranties were of little or no value because customers already had the same rights for free under Australian Consumer Law, which generally entitle consumers to a repair, replacement or refund if they buy a defective product.

JB Hi-Fi has said it takes its compliance with legal obligations seriously, believes it has complied with the law and intends to vigorously defend the claim.

Harvey Norman has been approached for comment.

Echo Law senior associate Dr Lauren Meath said the law firm had heard from "hundreds" of Harvey Norman customers who were "furious" they had paid thousands of dollars for product care warranties over the years for little or no benefit.

"They feel like they've been tricked," Dr Meath said.

The lawsuit alleges Harvey Norman engaged in "misleading or deceptive conduct as well as unconscionable conduct, by leading customers to believe that the extended warranty would give them additional protection they would not have otherwise had," she said.