Businesses misrepresenting themselves as Australian fashion retailers are defrauding Australian consumers, the Australian Competition and Consumer Commission warns.
The ACCC describes the scammers as so-called ‘ghost stores’, where operators falsely represent themselves as local Australian businesses that sell high-quality clothing and footwear and are imminently closing down.
It was found that these companies are instead based overseas, not closing, and are drop-shipping low-quality goods.
The ACCC has issued public warning notices to consumers regarding four websites: Everly-Melbourne, WillowandGrace Adelaide, Sophie-Claire and Double Bay Boutique – all with dot-com domain names.
The ACCC says these companies are not based in Melbourne, Adelaide or Double Bay, nor are they imminently closing down.
The public warning notices follow 360 reports made to the ACCC in recent months regarding about 60 ghost stores. Media reports suggest many others may be operating.
Some consumers have complained that ghost stores have refused to provide refunds or respond to customers who complain about the inferior quality of the goods compared to the advertised descriptions.
“Often ghost stores will share an emotional story on their social media or website that they are a small, locally operated business, needing to close for financial reasons,” said ACCC deputy chair Catriona Lowe.
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