JB Hi‑Fi has lost its attempt to secure a “soft class closure” in the Victorian Supreme Court, in a case brought by around eight million customers who claim they were sold essentially worthless extended warranties.

The class action, launched in December 2023 by Melbourne-based law firm Maurice Blackburn, alleges that JB Hi‑Fi Group Pty Ltd (“JB Hi‑Fi”) sold extended warranties that expire three to six years after purchase but offer little or no value. Lawyers acting for the customers argue that the warranties largely replicate protections already provided for free under the Australian Consumer Law (ACL) and that the retailer failed to adequately inform consumers of their rights.

The court has approved a group costs order of 30% for Maurice Blackburn’s fees, which the judge described as a “high end” rate for class actions. ChannelNews understands that high-percentage costs orders are common in large, mass-consumer cases where potential exposure is significant.

JB Hi‑Fi had sought soft class closure orders, which would have set cut-off dates or restricted new group members, covering roughly eight million potential claimants. The court rejected the application, citing the risk of conflicts of interest among group members and the possibility that a “post-settlement wave” of late registrations could compromise fairness or complicate case administration.

Separately, JB Hi‑Fi applied for a preliminary ruling on how the statutory guarantee period under the ACL should be treated in the context of an extended warranty class action. The court refused a separate hearing on this issue, noting that it was a novel legal question not yet addressed by the High Court of Australia and could trigger an appeal.

The case is scheduled to begin in the Victorian Supreme Court on 5 October 2026 and is expected to last six weeks. It will focus initially on lead plaintiff Jeremy Clarke and a representative sample of other claimants. Decisions in this “sample trial” will determine whether the remaining eight million customers have valid claims. Maurice Blackburn is increasingly using this approach in large class actions, allowing pivotal issues to be resolved early before the full group is considered.

A loss in this case could have far-reaching implications for other retailers that have sold paid extended warranties. Experts warn that retailers must ensure that any extended or “extra-care” products genuinely offer benefits beyond statutory rights. Failure to do so risks allegations of misleading or unconscionable conduct under the ACL.

Retailers must also ensure marketing, sales scripts, and disclosures clearly explain statutory rights and how paid products differ, if at all. For companies with millions of customers, potential exposure can be enormous, making early risk assessment and litigation strategy critical.

The refusal to grant JB Hi‑Fi’s soft class closure highlights that courts are unlikely to allow large consumer groups to be capped early. Legal experts told ChannelNews that courts may order “lead-plaintiff plus sample members” trials to resolve core issues, with the outcomes shaping both defendant strategy and future group claims.

With group costs orders of up to 30% possible, retailers could face substantial legal expenses if they lose, though some may have insurance to mitigate this risk. The case also signals to litigation funders and law firms that pursuing large-scale consumer claims against major retailers remains viable.