Harvey Norman Holdings Ltd will pay $35 million for a 19-month advertising campaign that promised consumers "no deposit" and "60 months interest free" payment terms while concealing mandatory credit card fees costing each customer at least $537. The penalty, finalized July 28, 2026, after appeals by both Harvey Norman and Latitude Finance were dismissed, came with an explicit judicial rebuke: Justice Michael O'Bryan cited Gerry Harvey's public attacks on the legal system as a factor in the severity of the fine (Brisbane Times).

The judgment exposes conduct that was neither accidental nor confined to isolated incidents. From January 1, 2020, to August 11, 2021, advertisements ran across newspapers, radio, and television nationwide, promoting what appeared to be straightforward financing. The Federal Court found that an "essential precondition" for the advertised terms was entry into a continuing credit contract linked to a Latitude GO Mastercard, with establishment fees and monthly account service fees that were "not adequately disclosed" (Federal Court orders).

The Full Federal Court dismissed appeals in September 2025, calling the grounds "barely arguable" and noting that "ordinary and reasonable consumers would have assumed that the offer made in the advertisements was stated accurately, particularly in light of Australia's strong consumer protection laws" (Full Federal Court judgment).

The penalty structure itself tells a story. Latitude Finance, which issued the credit cards, was fined $20 million—roughly 57% of Harvey Norman's penalty. Justice O'Bryan was explicit about why the retailer bore heavier responsibility: Harvey's "complete disregard for consumers" and his public declaration that "the whole legal system is completely f---ed in Australia" demonstrated an attitude the court found worthy of special notice (ASIC media release).

Harvey Norman's franchise structure now faces a stress test. The misleading campaign ran through approximately 200 franchised stores nationwide, coordinated across national media with Latitude Finance. This suggests franchisor-level direction rather than rogue franchisee behavior. The company acknowledges in its annual report that "compliance by franchisees with franchise agreements" poses a material risk, with potential consequences including "damage to the brand, fines and other sanctions from regulators" (Harvey Norman Annual Report).

The court's remedy includes 90 days of corrective advertising on Harvey Norman's homepage, a requirement that compounds reputational damage with procedural humiliation. The company must also pay ASIC's legal costs.

When 200 locations disseminate identical misleading claims over 19 months, the distinction between franchisor direction and franchisee autonomy dissolves. So does the liability shield. Harvey Norman's shares closed down 2.3% on the news.