Online retailer Dysck Pty Ltd, trading as Neptune Blanket, has paid $59,400 in penalties after the ACCC issued it with three infringement notices for making allegedly misleading statements to two consumers about their rights, and not including mandatory wording in its warranty against defects.
Neptune Blanket sells a variety of products on its website, including sensory mats, blankets and pillows.
Statements made to consumers were allegedly false or misleading
The ACCC issued two infringement notices in relation to emails Neptune Blanket sent to two consumers who raised concerns about products they had bought. One of the consumers sought a refund for a mat they claimed did not lie flat, creating a tripping hazard, while the other sought a refund for a mat they claimed was shorter than described on the website.
The ACCC alleges that in its emails to the two consumers, Neptune Blanket made statements implying that:
- returns/exchanges were at its discretion or only available as store credit issued in the form of gift cards
- that the item needed to be unopened, unused and in its original condition to be eligible for exchanges; and/or
- that it was the customer's responsibility to pay for return shipping and that shipping costs were non-refundable.
Under the Australian Consumer Law (ACL), goods and services supplied to consumers automatically come with basic rights called consumer guarantees. These include that goods must be of acceptable quality and fit for purpose, and match any description provided.
If goods supplied by a business fail to meet one or more of the consumer guarantees, a consumer is entitled to a remedy. This may be a refund, repair or replacement, depending on the circumstances.
"The ACCC was concerned that making allegedly misleading statements in these emails may have discouraged those consumers from seeking remedies they might have been entitled to under the Australian Consumer Law," ACCC Commissioner Dr Philip Williams said.
The ACCC alleges these statements were false or misleading because they implied there were conditions or limitations on the rights or remedies potentially available under the consumer guarantee provisions of the ACL. For example, consumers may have been entitled to a refund and not just a store credit, they may have been entitled to a replacement even if the item had been opened or used, or they may not have been responsible for covering return shipping costs.
Mandatory wording missing from warranty
The ACCC issued a third infringement notice in relation to Neptune Blanket's alleged failure to include the mandatory wording alerting customers to consumer guarantees in a statement it made on the 'Returns / Exchange' page of its website about a warranty it offered for product faults.
"Warranties are additional to the consumer guarantees and do not limit or replace those rights," Dr Williams said.
"If businesses choose to provide warranties against defects, they should be aware that the Australian Consumer Law requires them to include specific information and wording."
The ACL requires any warranty against defects made by a business to include specified information and, to the extent it is in relation to the supply of goods only, the following mandatory wording: Our goods come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure.
"In this case, the failure to include the mandatory wording meant it was not clear to consumers that they were entitled to remedies under the consumer guarantee provisions of the Australian Consumer Law, so they may not have pursued their rights against the retailer," Dr Williams said.
Neptune Blanket ceased using the allegedly misleading statements, published the mandatory warranty wording on its website, and updated its processes after it was contacted by the ACCC.
"While the ACCC welcomes improvements in compliance, steps taken after ACCC engagement may not prevent enforcement action," Dr Williams said.
Consumers can find further information about their rights and how to enforce them on the ACCC website.
Background
Neptune Blanket is a Sydney-based online retail business established in 2017 which sells a variety of products, including sensory mats, weighted blankets and pillows.
Note
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain consumer protection provisions in the Australian Consumer Law. Infringement notices are published on the ACCC's Infringement Notices Register.
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Australian Consumer Law.
More information about consumer guarantees can be found on the ACCC website.
