Online retailer Neptune Blanket has paid $59,400 in penalties after the Australian Competition and Consumer Commission issued three infringement notices over allegedly misleading statements concerning consumers’ rights under the Australian Consumer Law.

The ACCC alleges the retailer, operated by Dysck Pty Ltd, made statements to customers that could have misrepresented their rights to refunds, replacements and other remedies when products failed to meet consumer guarantees.

Two of the infringement notices relate to communications with customers seeking remedies for products they claimed did not meet the requirements or descriptions provided by Neptune Blanket.

According to the ACCC, one customer complained that a sensory mat would not lie flat and presented a tripping hazard, while another said a mat was shorter than the dimensions advertised on the retailer’s website.

The ACCC alleges Neptune Blanket told, or implied to, those customers that returns or exchanges were subject to the company’s discretion or could be provided only as store credit.

The regulator also alleges customers were told products needed to be unopened, unused and in their original condition to qualify for an exchange, and that customers were responsible for return shipping costs.

The ACCC said such statements could mislead consumers about their rights under the Australian Consumer Law.

Australian Consumer Law consumer guarantees apply automatically to goods sold to consumers and cannot simply be removed through a retailer’s returns policy. Depending on the circumstances, consumers may have rights to a repair, replacement or refund when goods fail to meet those guarantees.

The third infringement notice concerned Neptune Blanket’s warranty against defects.

The ACCC alleges the retailer’s website did not contain mandatory wording informing consumers that a warranty against defects operates alongside, rather than replacing, their consumer guarantee rights under the Australian Consumer Law.

Following the ACCC’s intervention, Neptune Blanket ceased using the statements in question, updated its website and changed its internal processes, according to the regulator.

It’s a case that highlights the risks for online retailers that use standardised returns and warranty policies that may inadvertently suggest consumers have fewer rights than they do under Australian law.

The ACCC has increasingly focused on consumer guarantees and the way businesses communicate refund and returns policies, with online retailers facing particular scrutiny as consumers increasingly make purchases without dealing directly with store staff.

Neptune Blanket operates online and sells items like weighted blankets, sensory mats, pillows and other products. 

The ACCC said payment of the infringement notices does not constitute an admission of liability by Neptune Blanket, and the regulator has not commenced court proceedings in relation to the matter.