ACCC warns about Digital Sourcing, formerly Luxstyle

20 December 2017

The ACCC has issued a Public Warning Notice about the conduct of overseas based online retailer Digital Sourcing ApS (Digital Sourcing), formerly Lux International Sales ApS (Luxstyle).

The ACCC has issued this notice because it has reasonable grounds to suspect that the conduct of Digital Sourcing may breach the Australian Consumer Law by misleading consumers and asserting a right to payment for unsolicited goods, and considers that it is in the public interest to inform consumers about this conduct. 

In March this year, the ACCC issued a Public Warning Notice about the conduct of Luxstyle.  This company changed its name to Digital Sourcing on 1 October. 

“This year, the ACCC received over 1600 complaints about Luxstyle and Digital Sourcing, which advertise beauty products on social media sites such as Facebook and Instagram. These ads direct people to a website that does not display prices unless the customer enters mailing and email addresses,” Deputy Chair Delia Rickard said.

“Many people have complained that they are then sent a goods package by this company after they entered their details, despite not making an order or entering payment information. The package contains an invoice with the products demanding payment. If not paid, people then receive letters of demand threatening legal action.”

Digital Sourcing claims that customers order the products based on its ‘deliver now, pay later’ system, and points to fine print displayed during the ordering process and links to its terms and conditions.

“The ACCC is concerned that Australian consumers, including children, are being tricked into receiving products they never ordered,” Ms Rickard said.

 “It is unacceptable to send people products that they didn’t order, based on obscure fine print disclaimers, then demand payment for them. The complaints we’ve received indicate that consumers did not know about the ‘deliver now, pay later’ system,” Ms Rickard said.

If you have received goods from either LuxStyle or Digital Sourcing that you did not order:

Ad on Digital Sourcing/Luxstyle’s website for Blackhead Killer, captured: 9 November 2017
Ad on Digital Sourcing/Luxstyle’s website for Blackhead Killer, captured: 9 November 2017

  • you should lodge a report with the ACCC at Make a consumer complaint
  • you are not required to pay for the unsolicited goods
  • if you contact Digital Sourcing in writing, and state that you do not want the products, then the business should recover the products within one month; if you don’t contact the business, then the business may recover the products within three months from the day after you received the products
  • you cannot unreasonably refuse to allow the supplier to recover the products
  • you may be liable to pay compensation if you wilfully damage the products during this period.

More information is available at: Disputing a debt

 

Release number: 
MR 254/17
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