10 Jan 2018

Warning against LuxStyle one-click debt tactic

5:01 pm on 10 January 2018

The Commerce Commission is warning the public to be wary about a beauty and fashion company's online sales method.

Commerce Commission

Photo: RNZ / Alexander Robertson

It's concerned that LuxStyle, a Danish-based business, is misleading consumers into buying products through social media websites such as Facebook and Instagram.

Antonia Horrocks from the commission said LuxStyle, rather than adding items to a shopping cart, was sending items with an invoice directly to people who clicked an 'order now' button.

"Customers have told us that they have unexpectedly received goods after providing address details and clicking order now, but before they add their credit card details," she said.

A screenshot of the LuxStyle website.

A screenshot of the LuxStyle website. Photo: Screenshot

Ms Horrocks said if it was not paid for, the company would then adds fees and threaten debt collection.

Ms Horrocks said both the Australian Competition and Consumer Commission and the Danish Consumer Ombudsman have listed warnings against the company.

She said when LuxStyle was contacted by the commission, it denied it had breached consumer laws.

"LuxStyle has told us that it doesn't see a problem with the manner in which its website and portals operate," she said.

But Ms Horrocks said the commission had received more than 50 complaints about the company since May last year.

"[That's] a relatively high [number] around this type of online sales practise and it just indicates that consumers are confused by the difference between this kind of online sales method and other methods of online shopping," she said.

RNZ has contacted LuxStyle for comment.

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