Harvey Norman - Misleading Catalogue and Website Advertising

LMadMapMan on 31/12/2011 - 15:54
Last edited 01/01/2012 - 10:55

Couldn't find this in the forums, so…

The ACCC has forced Harvey Norman to print a 'corrective notice' admitting that they mislead consumers about in-store prices.

Consumers (us!) got the impression from HN's advertising, that because both the HN catalogue and their website published a price, the published price applied everywhere.

Not so!

In fact, HN's catalogue price applied to only one store in each state/territory and their website price only applied in one store nationally - Auburn, NSW.

The ACCC took exception to this and the Federal Court pinged HN for it. (The court also wrapped HN over the knuckles at the same time for advertising 3D TVs - so that people could watch the 2010 AFL & NRL Grand finals in 3D - for areas where there wasn't any 3D format broadcast).

Hardly Normal? Totally Normal!

Result: $750,000 fine & don't do anything similar for a period of three years.

Here's the corrective notice from this morning's SYD Daily Telegraph/ADL Advertiser (I only checked two). I've yet to see the notice on HN's website (the judgement also requires them to publish it online).

EDIT: Now online - Thanks @dorian_gray

If you think you've been misled by their advertising, the HN 'apology' says to contact John Slack-Smith on (02) 9201 6111. Wonder how many will be calling or trusting their advertised prices again…

General Discussion

Comments

  • robotdad on 01/01/2012 - 01:11

    Loving the ACCC's fun with HN….Wish the fines could be higher - I am sure they will not make a dent in the profit associated with the HN conduct.

  • artxty on 01/01/2012 - 10:00

    ACCC is doing a very good job.

  • dorian_gray on 01/01/2012 - 10:04

    the notice is now on their website

    http://www.harveynorman.com.au/corrective-notice-catalogue-w…

  • c64 on 01/01/2012 - 11:10

    cudos to the accc!

  • Postulative on 01/01/2012 - 11:36

    Wow - $750,000. That must really hurt a company the size of Harvey Norman.

    Until the laws start providing for executives to be jailed for lying, there's not much disincentive. And of course if that happens Gerry'll threaten to go off-shore. Oh, wait.

  • dorian_gray on 01/01/2012 - 12:52
    +2

    he is just a very mean bully out to victimize us, the consumers. He has the audacity to criticize us because we buy overseas and yet he plays a very dirty game in Australia.

    He should advertise truthfully first and put a fair price on his products before raising his fist.

  • theworks on 01/01/2012 - 13:51

    The fine reflects the crime… I doubt that HN generated an extra 750k profit in these cases

  • AntMan76 on 01/01/2012 - 14:27

    So what will they do now? Run different catalogues in different regions/stores? Make the franchise adopt the advertised price? Or just put a big fat "only at such-and-such store" in the catalogue/online?

    Online prices will be interesting.

  • dorian_gray on 01/01/2012 - 20:59

    I posted a similar thread on whirlpool. I wonder why it got closed.

    http://forums.whirlpool.net.au/forum-replies.cfm?t=1840358

    oh found out why. double posting. LOLS!

  • chuckynoris on 01/01/2012 - 22:34

    The fine might not be much but the fact they have to place ads will be embarrassing enough for them letting everyone know what they have done. Also all the ads they place they have to pay for that so that will cost them a fair bit as well. Though as someone commented the laws are not tough enough. If you did this in the US the directors would face a very heavy fine and even jail.

  • PVA on 02/01/2012 - 18:33
    +1

    Plus a $500000 fine for misleading 3d tv adverts. So $1.2 million in fines for ripping off people, excellent.

    On a side note, kind of, I was at hn last thursday just to see if there were any tablet bargains. I noticed a toshiba lappy that I bought from dick smith for $639 two months ago. They had a floor stock one at the back for $899 and a new one for $999 - the tosh rrp was $899! Crooks.

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