Harvey Norman Using ACCC Incident To Educate Its Franchisees

Current.com.au:

Harvey Norman is using its run in with the ACCC yesterday as a learning experience, with chief operating officer John Slack-Smith telling Current.com.au that the recently mandated Australian Consumer Law is a “new environment” for suppliers and retailers.

Six West Australian Harvey Norman franchisees have each been fined $6,600 in infringement notices for not stocking a Kodak camera featured in a national catalogue advertisement. As a result of paying this infringement notice, the Harvey Norman franchisees have not admitted any guilt in this matter.

Current.com.au understands that part of the Harvey Norman franchise agreement, franchisees are required to stock all products featured in national catalogues. Furthermore, we understand that Harvey Norman catalogues are produced for a profit, with individual suppliers paying to be featured.

Slack-Smith said that although the franchisees have breached their agreement with the publicly listed Harvey Norman company by not stocking the camera, no further action would be taken.

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