An online retailer is demanding payment from people who never placed an order and then calling in debt collectors.
Danish site, LuxStyle, is targeting Australians on social media with
advertisements, sending them to a site with the Australian internet country code 'au' in its URL.
But once on the site, Aussies can't see the price of their items – such as
a face mask known as "the blackhead killer", pictured – unless they enter mailing
and email addresses.
LuxStyle is treating this as a consent to purchase, says the ACCC, by mailing out the products and an invoice demanding payment. This is the case even
when people close the website window and leave right after viewing details
In some instances where payment was refused, LuxStyle commissioned debt
The ACCC has received 127 complaints about LuxStyle in the two months since
Deputy Chair at the ACCC, Delia Rickard, says people who did not commit to
buy LuxStyle's products are legally protected under Australian Consumer
"If a business sends unsolicited goods to an Australian consumer, the
consumer is not required to pay for the goods, nor is the consumer required
to pay to return the goods," says Rickard.
"The ACCC is very concerned that consumers are reporting that, in response
to demands from LuxStyle, they have paid for goods that they did not order
and do not want," she adds.
Customers in Australia,
New Zealand and Canada have lodged complaints with the Danish Consumer Ombudsman, who is also
conducting an investigation into LuxStyle's practices.
LuxStyle has made pricing visible after being reported to
Danish law enforcement.
People who've been contacted by a debt collector about goods from
LuxStyle should lodge a report via the ACCC's website.