Retailers Harvey Norman and Latitude Financial have been ordered to pay a combined $55 million in fines following a misleading advertising campaign concerning interest-free payment schemes. The Australian Securities and Investments Commission (ASIC) confirmed the penalty on Tuesday.
The regulator found that the companies promoted a 60-month interest-free payment plan that misled consumers. To access this offer, customers were required to take out credit cards and pay additional fees, contradicting the advertised interest-free nature of the promotion.
ASIC's action highlights concerns over deceptive advertising practices within the retail finance sector, particularly regarding payment plans that may obscure true costs to consumers.