Commerce Commission advises online shoppers to be wary using Danish firm's sites

The Commerce Commission is warning shoppers to be wary of e-commerce retailer LuxStyle. Photo / 123RF

The Commerce Commission is advising shoppers to be wary when browsing for products online on sites operated by Denmark-based Lux International Sales, which it says uses a "deliver now, pay later" scheme.

The consumer watchdog has received 50 complaints about Lux International Sales (LuxStyle) since May 2016, with many claiming they were unaware goods were sent out prior to tendering a purchase.

LuxStyle, operated by Lux International Sales ApS, runs local website luxstyle.co.nz and reaches many customers through social media advertisements.

The site's operating model sees goods sent to consumers prior to payment - a worry for the Commerce Commission, which says consumers are being misled into circumstances where they do not intend to make a purchase.

Commerce Commission general manager of competition Antonia Horrocks said consumers were familiar with the concept of adding items to an online shopping cart - but that didn't mean a person had committed to making the purchase.

LuxStyle portals did not work that way, Horrocks said: "Prices for goods are not prominently displayed on the sites and by clicking an 'order now' button consumers find that LuxStyle sends them the goods and an invoice. If they don't pay, LuxStyle adds fees and threatens debt collection."

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

Those who do not want to receive goods should not press the "order now" button, Horrocks said.

A cancel order option is available through a link in the order confirmation email.

Luxstyle has been subject to warnings from the Australian Competition and Consumer Commission and the Danish Consumer Ombudsman (DCO).