We can't help you': Harvey Norman fined for misleading consumers about their rights

Date
    January 18, 2016
    Canberra Times

A Harvey Norman franchisee has been fined $52,000 for repeatedly telling customers with new but problem-plagued computers that it couldn't help them.   :(

The Federal Court found a Harvey Norman store on the Gold Coast breached two sections of consumer law by falsely telling customers with malfunctioning computers that it had no obligation to provide a remedy and couldn't assist any further without payment.


The Harvey Norman electronics chain has now paid $286,000 in penalties for misleading consumers about their rights.

One woman, whose Sony laptop sometimes failed to start, failed to shut down and was slow, kept being told by a salesperson: "We can't help you."   :(

One man, who complained his new Acer desktop randomly froze and shut down, was told on two occasions: "There's nothing we can do."

Under consumer law, products sold in Australia come with a consumer guarantee, meaning they must be of acceptable quality. If not, the retailer must offer a repair, replacement or a refund.

The proceedings were brought by the Australian Competition and Consumer Commission.

"This penalty is a timely reminder to all businesses, whether large or small, that they must not mislead consumers about consumer guarantee rights under the Australian Consumer Law," the ACCC's acting chairman Michael Schaper said.

The latest order bumps up the total amount of penalties paid by Harvey Norman franchisees in regards to false or misleading representations about consumer rights to $286,000.

In 2014, four franchisees were hit with penalties ranging from $10,000 to $26,000 - an Oxley store in Queensland, a Gordon store in NSW, and Mandurah and Albany stores in Western Australia.

Justice John Dowsett said, in imposing a penalty of $52,000 against Bunavit, the operator of the Bundall superstore in Queensland, he took into account that there were more impugned statements than in other comparable cases, the conduct continued over a longer period, and more staff members were involved.

He also took into account Bunavit's sales revenue of nearly $70 million and net profit of $1.2 million in 2012-13 - "significantly larger" than other stores in comparable cases.

In the Bunavit case, the salesperson told the customer with the faulty Sony laptop that they couldn't help her and to approach the manufacturer.

But when she received her laptop back from an Sony-authorised service centre, it had developed more problems. Again, Harvey Norman told her to go back to Sony.

When she got her laptop back for the second time, the DC input wasn't working, meaning she could no longer charge the battery.

Harvey Norman employees then told her the DC input issue was her problem, they couldn't help her unless she wanted to pay, and they were not willing to pay for a refund or replacement.

"The reason is that you did not come to us for the initial repair," a salesperson said.

"If you send the laptop back to Planet Tech to repair the DC input issue, then we will agree to pay for half of the repair costs," the same salesperson said later on the same day.

Only after she lodged complaints with the ACCC and the Queensland Office of Fair Trading did Harvey Norman begin fixing the laptop problems.

Justice Dowsett said broad denials of liability by a retailer may lead a consumer into thinking the persistence required would be "too much trouble, with too little assurance of a satisfactory outcome".

"A great number of electronic devices are purchased by consumers from retailers such as Bunavit. Consumers frequently return such devices, claiming that they are faulty, or not of an acceptable quality," he said.

"A retailer should ensure that its staff members are informed about, and conduct themselves in conformity with, the Australian Consumer Law."

I think you are being unfair with the title of YOUR thread crook....Harvey Norman FRANCHISEE..

a world of difference.

I doubt Gerry Harvey would have been saying its ok its only a franchise!

They have damaged the brand name Harvey Norman regardless

Redmond Neck wrote on Jan 20^th, 2016 at 7:50am:

I doubt Gerry Harvey would have been saying its ok its only a franchise! They have damaged the brand name Harvey Norman regardless

if crook had his way.. they would be gone...a few lefties on here do not have a good word to say for H.N.   ...so that must include the employees as well..

although whenever I shop there I am more than happy with the service...

These franchisee's all work under strict guidelines that would include this policy.

Looking at the numbers I would suspect that paying these fines would be way cheaper than providing the proper service level to customers.

cods wrote on Jan 20^th, 2016 at 7:53am:

Redmond Neck wrote on Jan 20th, 2016 at 7:50am: I doubt Gerry Harvey would have been saying its ok its only a franchise! They have damaged the brand name Harvey Norman regardless if crook had his way.. they would be gone...a few lefties on here do not have a good word to say for H.N.   ...so that must include the employees as well.. although whenever I shop there I am more than happy with the service...

Are you against crooks freedom of speech?

Dnarever wrote on Jan 20^th, 2016 at 8:02am:

These franchisee's all work under strict guidelines that would include this policy. Looking at the numbers I would suspect that paying these fines would be way cheaper than providing the proper service level to customers.

why cant people take their business elsewhere???.. I have never had any trouble with after sales service...[havent bought computer from there though]

TVs washing machine stove top..and appliances 

my bogey is Good Guys will never use them again..

Redmond Neck wrote on Jan 20^th, 2016 at 8:18am:

cods wrote on Jan 20th, 2016 at 7:53am: Redmond Neck wrote on Jan 20th, 2016 at 7:50am: I doubt Gerry Harvey would have been saying its ok its only a franchise! They have damaged the brand name Harvey Norman regardless if crook had his way.. they would be gone...a few lefties on here do not have a good word to say for H.N.   ...so that must include the employees as well.. although whenever I shop there I am more than happy with the service... Are you against crooks freedom of speech?

noooooooo not at all..

just hate people who do nothing but rubbish aussie business put it down even say they will be happy to see it fold up... and then whinge about penalty rates..and aussie unemployment... >:( >:(

if you want top of the range for workers then the least you can do is support those who are prepared to put their own money where their mouth is.....and risk it...

look at the title of this thread alone...it smacks of crooks disdain for Harvey Norman

cods wrote on Jan 20^th, 2016 at 7:53am:

Redmond Neck wrote on Jan 20th, 2016 at 7:50am: I doubt Gerry Harvey would have been saying its ok its only a franchise! They have damaged the brand name Harvey Norman regardless if crook had his way.. they would be gone...a few lefties on here do not have a good word to say for H.N.   ...so that must include the employees as well.. although whenever I shop there I am more than happy with the service...

I have no problem with the service either. Their furniture is overpriced though.

To be honest, I have never had a problem with Harvey Norman that wasn't put right very quickly.

Bad business behaviour should be outed just as bad Union behaviour!

Well done crook keep it up!

Harvey Norman treat their employees appallingly.

I'd never go anywhere near one of their stores.

cods wrote on Jan 20^th, 2016 at 7:53am:

Redmond Neck wrote on Jan 20th, 2016 at 7:50am: I doubt Gerry Harvey would have been saying its ok its only a franchise! They have damaged the brand name Harvey Norman regardless if crook had his way.. they would be gone...a few lefties on here do not have a good word to say for H.N.   ...so that must include the employees as well.. although whenever I shop there I am more than happy with the service...

Yeh but i bet you old harveys policy is not to give a refund for goods unfit for the purpose they were sold for !! The trouble with these box shifters and import junkies is they are quick to grab the money for doing  nothing for the customer and then throw their hands in the air when they are required to get off their big fat arses and make an effort :(

Harvey lost me with his push to get GST on online goods - his reasoning was either ill informed or dishonest.

He has put us in a position where everyone will be slugged more tax without an upside for anyone.

Putting an additional 10% on goods was never going to alleviate the 200% over charging issue.

7-11 is only a franchise too.... wait until the turds begin to float to the top.... franchise/smanchise....

cods wrote on Jan 20^th, 2016 at 8:25am:

Redmond Neck wrote on Jan 20th, 2016 at 8:18am: cods wrote on Jan 20th, 2016 at 7:53am: Redmond Neck wrote on Jan 20th, 2016 at 7:50am: I doubt Gerry Harvey would have been saying its ok its only a franchise! They have damaged the brand name Harvey Norman regardless if crook had his way.. they would be gone...a few lefties on here do not have a good word to say for H.N.   ...so that must include the employees as well.. although whenever I shop there I am more than happy with the service... Are you against crooks freedom of speech? noooooooo not at all.. just hate people who do nothing but rubbish aussie business put it down even say they will be happy to see it fold up... and then whinge about penalty rates..and aussie unemployment... >:( >:( if you want top of the range for workers then the least you can do is support those who are prepared to put their own money where their mouth is.....and risk it... look at the title of this thread alone...it smacks of crooks disdain for Harvey Norman

aussie business :D LOL

Just a glorified box shifter which supports no local content and a whole lot of fickle aussies falling over themselves to buy shares in it :D LOL

Dnarever wrote on Jan 20^th, 2016 at 10:13am:

Harvey lost me with his push to get GST on online goods - his reasoning was either ill informed or dishonest. He has put us in a position where everyone will be slugged more tax without an upside for anyone. Putting an additional 10% on goods was never going to alleviate the 200% over charging issue.

An ulterior motive designed to tie up everyone's two dollar online purchase in customs so you end up so frustrated and buying it off old harvey for 10x the price. This is one policy that the libbos will regret :(