Toshiba's £329 tablet was made available earlier this month. The rival to Apple's iPad runs Google's Android 2.2 platform, has a 10.1in capacitive touchscreen and is powered by an nVidia Tegra 2 chip.
It also comes with 16GB of built-in memory and has an SD card slot allowing for as much as 32GB of storage capacity to be added, taking the Folio's overall capacity to 48GB.
"We can confirm that we have taken the Toshiba Folio off sale temporarily as we have had a high level of returns and we do not want to give our customers a bad experience of what is actually a very good product," said Anina Castle from PC World.
"We are working with Toshiba to identify what the issue is and hope to have a resolution very soon."
Toshiba confirmed it was aware of the returns and "is currently working with Dixons Retail to provide a solution".
"An update on availability will be provided in due course."
Meanwhile, according to a post on the MoDaCo forums, Dixons, which is also owned to DSGi, had increased the price of the device to £999.99. The post included a screen grab of an internal memo which said the price rise was to "prevent further sales". Dixons confirmed the rise was its way of alerting stores to stop selling the device.
"There seems to be a number of issues, and not one specific issue," the memo read.
See also: Toshiba unveils 10in Android tablet