Harvey Norman is facing a new class action lawsuit in connection with the promotion of Latitude Finance Australia’s interest-free payment plans.

The furniture and electronics retailer said in a statement on Monday that it was listed as the second defendant in the class action, which was filed last week.

The proceedings include claims for restitution, payment of damages, to declare any relevant consumer agreements with Latitude as null and void, interest and costs for the first plaintiff, second plaintiff and group members.

Harvey Norman said it intends to “defend the proceedings vigorously” and will provide further updates when available.

The retailer previously ran a national advertising campaign with Latitude in 2020 and 2021 to promote a 60-month interest-free and no-deposit payment method for goods purchased at its stores.

In 2024, the Australian Securities and Investments Commission (Asic) commenced legal proceedings against the two firms, alleging they made false and misleading financial claims.

Asic said the financial obligations under a credit card were different from what was advertised.

“A continuing credit contract can involve multiple advances of credit together with monthly account service fees and high interest rates, all of which add up for consumers,” Asic deputy chair Sarah Court said at the time.

The Federal Court later ruled in favour of Asic, saying that consumers had to enter into a “fundamentally different” financial arrangement than the one promoted.

Harvey Norman appealed to the decision, but was dismissed by the court last September.