Commerce Commission warns shoppers of LuxStyle selling technique

  • 10/01/2018
Online shopping
Online shopping. Photo credit: iStock

Online shoppers need to be wary when browsing for products on LuxStyle, due to its sales method, the Commerce Commission says.

LuxStyle, a Danish-based company, operates the luxstyle.co.nz website, but also reaches consumers through social media ads that direct consumers to online portals, using a ‘deliver now, pay later’ scheme.

The commission says shoppers are sent goods without being required to pay for them online first, which may mislead consumers in circumstances where they don't intend to buy.

The commission said it had received more than 50 complaints about LuxStyle since May 2016, with many shoppers unaware that they would be sent the goods before paying.

LuxStyle has also been the subject of warnings from other international agencies, such as the Australian Competition and Consumer Commission.

The Danish Consumer Ombudsman is investigating complaints, including from Kiwis, the commission said.

Shoppers normally add items to their online shopping cart and don't have to commit to making the purchase, with the option to withdraw the order at any time.

But LuxStyle portals don't work that way, says Commerce Commission competition general manager Antonia Horrocks.

When contacted by the commission, LuxStyle denied it breached consumer laws.    

NZN