Federal Court proceedings over misleading advertising could see Harvey Norman and its financier Latitude Finance face hefty fines, as the fallout from controversial remarks by Chairman Gerry Harvey continues.

The Australian Securities & Investments Commission (ASIC) is seeking a $50 million fine for Harvey Norman and $35 million for Latitude Finance after the companies were found guilty of promoting “60‑month interest-free, no deposit” payment plans that were deemed misleading to consumers.

Harvey Norman’s legal team has argued that any penalty should be capped at $24 million, and that the company should not be penalised for Harvey’s “unattractive” comments about the case.

The issue has been compounded by past public statements from Gerry Harvey, including an interview in which he described Australia’s legal system as “fucked.” ASIC’s counsel warned the court that such remarks could influence the perception of the case, particularly as Harvey has yet to apologise.

Harvey Norman’s lawyers defended the company’s advertising campaign, noting that over a 19-month period it was broadcast 900,000 times on television, ran on 143 radio stations, and appeared in 168 newspaper ads. They argued that consumers were therefore “offered an informed choice.”

Federal Court Justice Michael O’Bryan, however, questioned whether the advertising adequately conveyed the costs involved. “When a customer hears fees may apply, they might think of late payment fees, but they don’t think of a monthly fee,” he said, calling the company’s disclosure “a little inadequate.”

The court has reserved its decision on the penalties.