The Australian Competition and Consumer Commission (ACCC) has issued Public Warning Notices against four online retailers it alleges are falsely presenting themselves as local businesses.
The websites — everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com, and doublebayboutique.com — are accused of misleading consumers through deceptive branding and marketing practices.
“We are warning Australians about the risks of engaging with these four websites specifically, which we allege are not based in Melbourne, Adelaide or Double Bay, nor are they imminently closing down,” said Catriona Lowe, ACCC Deputy Chair.
According to the regulator, the operators of these sites claim to be Australian-based stores on the verge of closing and advertise high-quality clothing and footwear. In reality, the ACCC alleges, they are overseas-based businesses using drop-shipping models to supply low-quality products.
“We further allege that the operators of these websites are supplying products which are not of the advertised quality.”
The ACCC said it has received at least 360 reports since January 2025 involving around 60 online retailers, though it suspects many more may be in operation. These ghost stores often promote themselves using paid ads on social media, presenting themselves as local boutiques to attract buyers.
The commission is also receiving complaints about ghost stores refusing refunds or offering only partial refunds, and failing to respond to customer concerns. In some cases, stores have rebranded under new names or used place names in their branding to appear local.
“We urge all Australians to think twice before clicking on ads they see on social media which claim to be from a boutique business based in a local town or city,” said Lowe.
“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.”
“This conduct preys on the empathy of consumers who have a genuine desire to support local businesses, as well as creating a false sense of urgency.”
The ACCC said some ghost stores adopt names similar to real local businesses, leading to reputational damage. It believes many operate via Shopify and promote through Meta-owned platforms such as Facebook and Instagram.
“We have written to both Meta Platforms (as the owner of Facebook and Instagram) and Shopify to request they scrutinise and take appropriate action against the operators of ghost stores,” said Lowe.
“We want to increase public awareness of these dishonest businesses so that Australians know how to spot them and can avoid being deceived into buying an inferior product.”
The ACCC advises consumers to be cautious of websites that:
- Use an Australian place in their name but have a
.com(not.com.au) domain. - Feature a backstory claiming the business is closing down.
- Provide limited contact information and no physical address or phone number.
- Offer a returns policy requiring goods to be sent overseas.
- Refer to non-Australian laws in legal disclaimers.
- Lack an ABN or ACN.
- Have poor reviews on external platforms but only positive ones on their own site.
- Use AI-generated images of staff or founders.
- Were recently created on social media and receive negative reactions.
Consumers are encouraged to:
- Check the business name on the Australian Business Register.
- Use Google Lens or reverse image search to see if product photos appear elsewhere.
- Search the business name online and read independent reviews.
- Avoid relying solely on testimonials posted on the business’ website.
If a purchase has already been made, the ACCC recommends contacting the payment provider to reverse the charge, submitting complaints to the relevant social media platform, and reporting the website to Scamwatch or Google for potential removal.
Consumers can also leave reviews on third-party platforms like Trustpilot and report Shopify-hosted sites directly through its merchant complaint process.