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Different name, same stuff - LuxStyle becomes Digital Sourcing

13 July 2018

The Commerce Commission is alerting the public to be wary when browsing for products online on sites operated by Digital Sourcing, formerly known as LuxStyle, a company based in Denmark.

Digital Sourcing operates the website but also reaches consumers via social media advertisements which direct them to online portals, in the same manner as LuxStyle.

In January 2018 the Commission issued an alert about LuxStyle’s sales method.

“This company appears to have changed its name but not its sales method, so we are repeating our alert to the public. We remain concerned that consumers are being misled into making purchases where they do not intend to do so,” said Antonia Horrocks, the Commission’s General Manager, Competition and Consumer.

The company uses a “deliver now, pay later” scheme in the portals so that consumers are sent goods without being required to pay for them online first.

“Consumers are mostly familiar with the concept of adding items to an online shopping cart. In general that doesn’t commit you to making a purchase, and you can withdraw from making the order at any time up until you make payment. The Digital Sourcing portals don’t work that way,” said Ms Horrocks.

“Our message to consumers remains the same as it was in January: be careful about clicking through any site operated by LuxStyle/Digital Sourcing. If you hit ‘order now’ you are not simply adding to the cart - you may receive the goods and a bill for them. Customers should not hit the ‘order now’ button if they don’t wish to receive the goods,” said Ms Horrocks.

The Commission has received complaints about Luxstyle/Digital Sourcing since May 2016, with many consumers apparently unaware that they would be sent the goods before they had tendered payment. When contacted by the Commission in 2017, LuxStyle denied that it breaches consumer laws.

If consumers receive an order confirmation email from Digital Sourcing for goods they did not intend to order, we recommend they follow the link in the email to cancel the order or contact Digital Sourcing’s customer service to request a cancellation.