A Danish online retailer has been accused of sending consumers payment notices for products they never ordered, prompting a public warning from the Australian Competition and Consumer Commission, which received 127 complaints in the first two months of this year.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Lux International Sales ApS, trading as LuxStyle, advertised its products in sponsored posts on social media, which directed customers to a website that did not display prices unless a mailing and email address was provided.
Products sold on the site include beauty accessories, bras, watches and "slimming" pants and belts.
Stacey Saliba, 28, saw a LuxStyle sponsored post on Instagram in October last year, advertising a pack of five face masks.
After clicking on the post she landed on the retailer's website, where she entered her name, address and email address in order to view the $35 price tag.
"I looked at the product but then I changed my mind and thought, 'I won't buy it', so I didn't press submit. But then right after I got an email saying thank you for your purchase, your products will be delivered soon," she said.
"I emailed them and said that I did not proceed with the purchase, I never even put in any payment details."
Ms Saliba then received an email from the retailer that stated, "when you fill in your details on our site or one of our landing pages and choose a quantity of product, the order gets processed. If you close out before paying, it does not automatically cancel your order".
"I told them I didn't want to go ahead with it but they said to try it and return it, so I did."
Five months later Ms Saliba has received three separate invoices for the product, with an additional $10 penalty fee attached to each.
Most recently she received a letter informing her that a debt collector would be handling the account if the total $65 was not paid.
"I was shocked when I first received it. I started doubting myself, thought maybe I had accidentally clicked. But I was even more shocked when they admitted [their process] themselves," she said.
"I've warned all my friends and family about it. It's so disrespectful and not genuine. It's clearly not about their products, it's just about the money."
LuxStyle has been contacted for comment.
The ACCC said it had reasonable grounds to suspect that LuxStyle's conduct may constitute a contravention of the Australian Consumer Law, by asserting a right to payment for unsolicited goods.
ACCC Deputy Chair Delia Rickard described the company's selling practices as "criminal and fraudulent."
"It is just not acceptable. There has clearly been no agreement, no decision to to purchase. It's just fraudulent."
Ms Rickard urged consumers to remember they did not have to pay for unsolicited goods, nor pay to return the goods.
"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 said.
"Consumers who have received goods from LuxStyle, or have been contacted by a debt collector about goods from LuxStyle, should lodge a report via the ACCC's website."
LuxStyle, a Danish company, is also the subject of an investigation by the Danish Consumer Ombudsman, with whom the ACCC is working on the issue.
The ombudsman has published information about consumer reports from all over Europe, as well as Australia, New Zealand and Canada.
Ms Rickard said the ACCC would focus on contacting debt collectors to inform them not to pursue debts.
She encouraged anyone contacted by a debt collector to present the ACCC's warning notice.
