Booktopia to pay $6m for misleading consumers

Online bookstore Booktopia has been hit with a $6 million fine from the ACCC after making false or misleading representations on its website, and in dealings with consumers, about consumer guarantee rights.

The e-commerce giant admitted that from at least 10 January 2020 to 2 November 2021, Booktopia made misleading statements in its online terms of business that consumers were only entitled to a refund, repair or replacement if they notified Booktopia within 2 business days of receiving a product that was faulty or not what they ordered.

Booktopia also admitted that its terms of business contained misleading representations, by stating that consumers were not entitled to a refund for digital products such as eBooks for any reason, including if the product was faulty.

It also admitted that it made misleading statements to 19 individual consumers in customer service calls by advising them that it was not obligated to provide a refund or replacement if the consumer had not notified Booktopia within two business days of delivery, even if the product was faulty.

Liza Carver, commissioner at the ACCC said Booktopia made misleading statements to consumers, telling them they were only entitled to a refund if they contacted them about a problem with their purchase within 2 business days of delivery.

She said, “Consumers are entitled to return faulty products within a reasonable time and receive a refund, repair, or replacement, depending on the nature of the fault.

“We do not know how many consumers may have been deterred from seeking a refund or replacement by Booktopia’s misleading representations on its website.”

In addition to ordering a $6m penalty, the Court ordered Booktopia to publish a notice on its website within 21 days correcting the false or misleading claims, and to establish a consumer law compliance program.

The ACCC and Booktopia made joint submissions in relation to penalty and other relief in this matter. The penalty figure put to the Court took into account Booktopia’s cooperation and financial position.

Booktopia is Australia’s largest online bookseller. Through the Booktopia Website, Booktopia supplies physical books, magazines, calendars, maps, stationery, games and puzzles, and also digital content such as eBooks and audio books, to consumers in Australia.