Neptune Blanket stung $59,400 over refund and warranty claims

Online retailer Dysck Pty Ltd, trading as Neptune Blanket, has paid $59,400 in penalties after the ACCC issued three infringement notices over allegedly misleading statements about consumer rights and missing mandatory warranty wording.

The Sydney-based business, which sells sensory mats, weighted blankets and pillows online, received two notices over emails sent to consumers seeking refunds and a third relating to information on its website.

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ACCC challenges refund and return statements

The two consumers had raised concerns about mats they purchased from Neptune Blanket. One sought a refund after claiming a mat did not lie flat and created a tripping hazard, while the other claimed a mat was shorter than its description on the website.

The ACCC alleges Neptune Blanket's responses implied that returns or exchanges were discretionary or limited to store credit, that products needed to be unopened and unused, and that customers could be required to pay return shipping costs.

Under the Australian Consumer Law, consumer guarantees apply automatically to goods and services. Depending on the circumstances, consumers may be entitled to remedies including a repair, replacement or refund when those guarantees are not met.

ACCC Commissioner Dr Philip Williams said: “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.”

Warranty wording also draws infringement notice

The third infringement notice related to Neptune Blanket's alleged failure to include mandatory Australian Consumer Law wording in a warranty against defects published on its Returns / Exchange page.

“Warranties are additional to the consumer guarantees and do not limit or replace those rights,” 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 ACCC said the missing wording could have left consumers unclear about remedies available independently of Neptune Blanket's own warranty.

Neptune Blanket has since stopped using the statements identified by the regulator, published the mandatory warranty wording on its website and updated its processes.

“While the ACCC welcomes improvements in compliance, steps taken after ACCC engagement may not prevent enforcement action,” Williams said.

The payment of an infringement notice penalty is not an admission that Neptune Blanket contravened the Australian Consumer Law.