Harvey Norman says it did not knowingly mislead consumers when it advertised 3D televisions in regional areas where such broadcasts were not available, although a court has found otherwise.
The retailer on Friday was fined $1.25 million by the Federal Court in Brisbane over the matter and also for not clearly stating some conditions in its catalogues.
In September 2010, Harvey Norman misleadingly gave the impression in advertisements that regional customers could buy a 3D television and watch the AFL and NRL grand finals in 3D format but the broadcast was in fact limited to metropolitan centres, the court found.
While the court deemed the retailer's conduct as seriously misleading and deceptive, Harvey Norman co-founder and chairman Gerry Harvey said the issue of regional coverage was simply overlooked and the false impression created by the advertisements was not deliberate.
"This was not intentional and sometimes the Trade Practice laws that we have punishes misleading conduct even if the conduct was unintentional," Mr Harvey told AAP.
"Harvey Norman maintains the judge was not entitled to come to that conclusion based on the joint submissions which were put to the court.
"Harvey Norman still maintains the conduct was not intentional."
The retailer was also ruled to have made misleading representations about the existence of certain conditions in its catalogue and website advertising between October 2008 and July 2011.
Its website and catalogues during that period gave the impression that advertised goods were available in all stores, when the offers were only being made in a single store in each state or territory.
Australian Competition and Consumer Commission chairman Rod Sims said retailers had a responsibility to ensure that accurate information was given to consumers about the uses and benefits of new and emerging technology, such as 3D television.
"Harvey Norman knew the facts," Mr Sims said.
"It should have got it right, and the court agreed."
Harvey Norman shares fell two cents to close at $2.09 on Friday, as the market as a whole declined.
http://www.sbs.com.au/news/article/1611629/latest-from-wire/
Where does the 1 mil go to then