The Federal Court has ordered a $33.5 million penalty against online retailer Walker Stores Pty Ltd (in liquidation), which traded as Snaffle, for unlawfully overcharging tens of thousands of consumers under credit contracts.
The Court found Walker Stores broke the law by miscalculating interest on more than 38,000 contracts, causing customers to be charged almost $20 million more interest - or nearly double the lawful amount - than they should have been.
The Court also found Snaffle's pricing structure for three sample credit contracts breached the 48% annual cost rate cap on the costs that could be charged under a credit contract, resulting in credit charges of between 88% and 103%.
ASIC Deputy Chair Sarah Court said the case highlighted the significant harm caused when vulnerable consumers are overcharged on everyday purchases.
'This is a substantial penalty for egregious misconduct that impacted tens of thousands of Australians.
'Consumers who enter these types of credit arrangements are often financially vulnerable. Charging unlawful interest can significantly exacerbate the customer's difficult financial position.
'This outcome sends a clear message: businesses must comply with the law when offering credit, and not structure their business to avoid consumer protections. ASIC will take strong action against credit providers who breach these important requirements.'
Justice Beach found that, between September 2021 and February 2025, Walker Stores entered into more than 38,000 credit contracts where interest was calculated incorrectly, by applying interest to the total contract amount rather than the unpaid balance.
In making orders against Walker Stores, his Honour said, 'The interest calculation contraventions are particularly serious in my view. Many consumers have been identified as people for whom Centrelink was their primary source of income'.
'The conduct is of repetition and scale which undermine the statutory regime and, in my view, substantial penalties are called for,' his Honour said.
Walker Stores has also been ordered to take reasonable steps to publish an adverse publicity notice informing consumers of its misconduct, and to pay ASIC's legal costs.
Justice Beach will publish his reasons for decision in due course.
Action against misconduct exploiting consumers facing financial difficulty, including predatory credit practices, is one of ASIC's 2026 enforcement priorities.
Background
ASIC commenced proceedings against Walker Stores in May 2025, alleging it inflated prices and overcharged consumers under credit contracts offered through its "Snaffle" website (25-084MR).
The contracts allowed consumers to purchase household goods such as appliances and electronics through instalment payments.
Walker Stores is in liquidation.
