ACCC takes Harvey Norman franchisees to court ABC Updated November 21, 2012, 8:51 am The competition watchdog is taking 11 Harvey Norman franchisees to the Federal Court for allegedly misrepresenting consumer rights. The ACCC alleges the franchisees of the stores misled and deceived customers by making false claims about warranties and refunds. As part of the action, the ACCC is seeking penalties, declarations, injunctions and costs. It is part of the commission's campaign on consumer guarantees and it says it is investigating other large companies for similar breaches. ACCC chairman Rod Sims said in a statement that consumers had the right to certain remedies when goods were not of acceptable quality or fit for the purpose for which they were sold. "These rights cannot be excluded, restricted or modified," he said. "For example, if an item purchased breaks down within a short time of being purchased, the consumer may be entitled to a refund or a replacement item." The ACCC says in some cases the franchisees said they had no obligation to provide remedies unless the store was notified within a specific period of time on particular items such as large appliances or items priced below a certain amount, or if the goods were still covered by the manufacturer's warranty. The ACCC also alleges some consumers were told they must pay a fee for the repair and return of faulty products. HI6027 Business and Corporate Law Group Assignment T3 2021

Page 8 of 12 The Harvey Norman franchisees that are being taken to court are: Avitalb Pty Limited, located in Albany, Western Australia Bunavit Pty Limited, located in Bundall, Queensland Camavit Pty Limited, located in Campbelltown, New South Wales Gordon Superstore Pty Limited, located in Gordon, New South Wales HP Superstore Pty Limited, located in Hoppers Crossing, Victoria Ipavit Pty Limited, located in Ipswich, Queensland Launceston Superstore Pty Limited, located in Launceston, Tasmania Mandurvit Pty Limited, located in Mandurah, Western Australia Moonah Superstore Pty Limited, located in Moonah, Tasmania Oxteha Pty Limited, located in Oxley, Queensland, and Salecomp Pty Limited, located in Sale, Victoria. Your group have been asked by Mr Sims to prepare a report that the ACCC can take against the Harvey Norman Franchisees. In your report, you must provide the following: - The relevant section/s of the Competition and Consumer Act (Cth) 2010; - The relevant case laws that can be referred to in support of arguing the matter at the Federal Court of Australia; - What are the maximum penalties that the court can award against the Harvey Norman Franchisees?