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Neptune Blanket pays penalties for misleading statements about consumer guarantees

Online retailer Dysck, trading as Neptune Blanket, has paid $59,400 in penalties following three infringement notices from the Australian Competition and Consumer Commission (ACCC).

The ACCC acted on complaints that Neptune Blanket misled consumers about their rights and failed to include necessary statutory language in its online warranty terms.

This included misleading claims about return policies and fees for items that were unopened or unused.

Under the Australian Consumer Law, products must meet standards of quality and description, and consumers have the right to remedies like refunds, repairs, or replacements. The ACCC noted that misleading statements might have discouraged consumers from seeking these remedies.

The third infringement notice addressed the absence of mandatory statutory text on Neptune Blanket’s ‘Returns / Exchange’ page.

Under the Australian Consumer Law (ACL), products must meet basic statutory consumer guarantees, including being of acceptable quality, fit for purpose, and matching provided descriptions. 

When goods fail to meet these standards, consumers are legally entitled to remedies such as refunds, repairs, or replacements, which retailers cannot restrict with internal policies.

“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,” said ACCC commissioner Dr Philip Williams.

“Warranties are additional to the consumer guarantees and do not limit or replace those rights,” said Williams. 

“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.”

Following contact from the regulator, Neptune Blanket updated its internal processes, removed the misleading communications, and added the mandatory ACL warranty language to its website.

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