Online retailer Neptune Blanket pays penalties for allegedly misleading statements about consumer guarantees

Online retailer Dysck Pty Ltd, trading as Neptune Blanket, has paid 59,400 dollars in penalties after the ACCC issued three infringement notices over statements made to consumers about their rights under the Australian Consumer Law. Two notices concerned emails Neptune Blanket sent to customers who sought refunds, one for a sensory mat that allegedly would not lie flat and presented a tripping hazard, the other for a mat the customer said was shorter than the dimensions advertised on the website. The ACCC alleges those emails implied returns or exchanges were at the retailer's discretion or limited to store credit, that items had to be unopened, unused and in original condition to qualify for exchange, and that customers had to pay non-refundable return shipping.

The third notice related to the warranty against defects on Neptune Blanket's website, which the ACCC says did not include the wording mandated by the Australian Consumer Law explaining that consumers have statutory rights independent of any warranty. Consumer guarantees under the Australian Consumer Law apply automatically to goods sold to consumers and cannot be limited or excluded by a retailer's returns policy. Where goods fail to meet a guarantee, such as being of acceptable quality or matching their description, a consumer may be entitled to a refund, repair or replacement depending on the circumstances, and this entitlement exists separately from any manufacturer or supplier warranty.

Payment of an infringement notice is not an admission of liability and is not a finding by a court. The ACCC said its concern was that the statements may have discouraged consumers from pursuing remedies they were otherwise entitled to under the law, and the outcome signals that smaller and mid-sized online retailers remain within reach of ACCC enforcement activity over consumer guarantee representations.