In Australian Securities and Investments Commission v Latitude Finance Australia (No 2) [2024] FCA 1205 the Federal Court of Australia decided that Latitude Finance Australia and Harvey Norman Holdings Ltd breached the ASIC Act by engaging in misleading conduct and making false or misleading representations in relation to a widespread advertising campaign published in newspapers and broadcast on television and radio across Australia between January 2020 and August 2021 which promoted the purchase of home and electrical goods from Harvey Norman stores by 60 equal monthly repayments on no deposit and interest-free terms (the promotion).

The decision determined the question of liability only, based on ASIC’s allegations with reference to 11 representative advertisements.

ASIC was concerned that the advertisements masked the fact that consumers were required to take out a continuing credit contract with Latitude that was linked to a credit card (the GO Mastercard) to purchase goods.

ASIC alleged that the promotion looked like a one-off loan. In fact, it was a rolling credit facility with an associated credit card. The advertisements did not disclose the establishment and monthly account service fees associated with the financial arrangement.

Latitude was involved in developing and approving the content of advertisements placed by Harvey Norman for the promotions involving Latitude and the GO Mastercard. This included signing off on the disclaimers and disclosures made in the advertisements.

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