ACCC Warns About Digital Sourcing

Consumer watchdog, ACCC has issued this notice because it has reasonable grounds to suspect that the conduct of Denmark based Digital Sourcing may breach the Australian Consumer Law by misleading consumers and asserting a right to payment for unsolicited goods.

In March this year, the ACCC issued a public warning notice about the conduct of Luxstyle.  This company changed its name to Digital Sourcing on 1 October. The company promotes itself as a cosmetics retailer “pioneering sustainable principles at the forefront of performance-driven e-commerce.”

“This year, the ACCC received over 1,600 complaints about Luxstyle and Digital Sourcing, which advertise beauty products on social media sites such as Facebook and Instagram. These ads direct people to a website that does not display prices unless the customer enters mailing and email addresses,” says ACCC deputy chair, Delia Rickard.

“Many people have complained that they are then sent a goods package by this company after they entered their details, despite not making an order or entering payment information. The package contains an invoice with the products demanding payment. If not paid, people then receive letters of demand threatening legal action.”

Digital Sourcing claims that customers order the products based on its “deliver-now, pay-later” system, and points to fine print displayed during the ordering process and links to its terms and conditions.

“The ACCC is concerned that Australian consumers, including children, are being tricked into receiving products they never ordered,” says Rickard.

“It is unacceptable to send people products that they didn’t order, based on obscure fine print disclaimers, then demand payment for them. The complaints we’ve received indicate that consumers did not know about the deliver-now, pay later-system,” adds Rickard.

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