Snaffle slapped with $33.5 million fine after overcharging probe

Harry Booth

1 hour ago

Online retailer Snaffle has been hit with a $33.5 million fine after a ruling by the Federal Court.

The penalty was issued against the now-liquidated Walker Stores Pty Ltd, which traded as Snaffle, for overcharging “tens of thousands” of customers under credit contracts. These contracts refer to Snafflle’s business model, which relied on payments through installments, referred to as “bite–sized”.

During the hearing, which was brought forward by Asic, the court found that Walker Stores had miscalculated the interest on more than 38,000 repayment contracts, constituting almost $20 million more in interest fees than lawfully allowed.

“This is a substantial penalty for egregious misconduct that impacted tens of thousands of Australians,” Asic deputy chair, Sarah Court, said.

“Consumers who enter these types of credit arrangements are often financially vulnerable. Charging unlawful interest can significantly exacerbate the customer’s difficult financial position.”

Along with the fine, 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.

“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,” Court added.