Aussies sue retailers over misleading extended warranties in 2023
- Echo Law has filed a class-action lawsuit against Harvey Norman, Domayne, and Joyce Mayne for selling extended warranties since September 2018.
- The lawsuit claims these warranties are unnecessary as Australian Consumer Law already provides similar protections for consumers.
- Customers feel misled and are seeking justice, highlighting the need for transparency in warranty sales.
In 2023, Echo Law initiated a class-action lawsuit in the Federal Court on behalf of customers from Harvey Norman, Domayne, and Joyce Mayne who purchased extended warranties since September 2018. The lawsuit claims that these 'product care' warranties are largely unnecessary and provide little to no value, as consumers already possess rights under Australian Consumer Law that entitle them to repairs, replacements, or refunds for defective products without additional costs. Maurice Blackburn Lawyers previously filed a similar lawsuit in the Supreme Court of Victoria for JB Hi-Fi customers who bought extended warranties between January 2011 and December 2023. Both legal actions argue that the retailers misled customers into believing that the extended warranties offered extra protection beyond what was already guaranteed by law. Dr. Lauren Meath from Echo Law reported that numerous Harvey Norman customers expressed their frustration over spending significant amounts on these warranties, feeling deceived by the retailers. The allegations include claims of misleading and unconscionable conduct, suggesting that customers were led to believe they needed these warranties for additional security. JB Hi-Fi has stated its commitment to legal compliance and plans to defend itself vigorously against the claims. Meanwhile, Harvey Norman has not yet commented on the lawsuit, leaving customers and the public awaiting further developments in this significant legal battle regarding consumer rights and warranty practices in Australia.