Commerce Commission warns of e-commerce site LuxStyle now trading as Digital Sourcing

The Commerce Commission is warning shoppers to be wary of Danish website Digital Sourcing.Photo / 123RF

Danish website LuxStyle earlier accused of misleading customers has changed its name to Digital Sourcing.

In January the Commerce Commission warned shoppers about LuxStyle's "deliver now, pay later" scheme, attracting customers through social media advertisements and then directing them to online purchase portal.

The commission received more than 50 complaints about LuxStyle, with many claiming they were unaware goods were sent out prior to tendering a purchase.

The e-commerce site is using the same sales method, under the name Digital Sourcing.

Commerce Commission general manager of competition and consumer, Antonia Horrocks, said the regulator was concerned shoppers are being misled into making purchases.

"Consumers are mostly familiar with the concept of adding items to an online shopping cart. In general that doesn't commit you to making a purchase, and you can withdraw from making the order at any time up until you make payment. The Digital Sourcing portals don't work that way," Horrocks said.

Digital Sourcing's landing page. Photo / Screenshot

"Our message to consumers remains the same as it was in January: be careful about clicking through any site operated by LuxStyle/Digital Sourcing. If you hit 'order now' you are not simply adding to the cart - you may receive the goods and a bill for them."

Customers should not press the 'order now' button if they do not wish to receive the goods, Horrocks said.

The Herald has approached Digital Sourcing for comment.

LuxStyle denied that it breached consumer laws when the commission approached it earlier in the year.

The company running the sites has also been subject to warnings from the Australian Competition and Consumer Commission and the Danish Consumer Ombudsman.