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Posted 03/07/2025 9:45am

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Ghost stores deceive,
Local claims, false products sold,
ACCC warns.

In partnership with
MiQ Sigma

ACCC issues warnings against alleged 'ghost stores' targeting Australian consumers

The Australian Competition and Consumer Commission (ACCC) has issued Public Warning Notices against four websites, alleging they are operating as 'ghost stores',  falsely representing themselves as local Australian businesses while selling low-quality products under the guise of high-quality clothing and footwear.

The websites in question are everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com, and doublebayboutique.com.

The ACCC has received at least 360 reports concerning 60 online retailers since the start of 2025, suggesting a rise in ghost store activities. Ghost stores are known to target consumers through social media advertisements and frequently utilise the Shopify e-commerce platform.

ACCC Deputy Chair Catriona Lowe said: "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... We further allege that the operators of these websites are supplying products which are not of the advertised quality."

The ACCC has contacted Meta Platforms, the owner of Facebook and Instagram, and Shopify, urging them to take action against ghost store operators. "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," Lowe said.

Ghost stores often employ certain tactics to deceive consumers. They typically have an Australian place in their name, use a '.com' domain, and create fake backstories. These stores may also require returns to overseas locations and often do not provide contact phone numbers, physical addresses, or Australian Business Numbers (ABN).

"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," Lowe explained. "They will claim they are having a ‘closing down sale’ as a result, with all stock heavily discounted and available on a very limited basis."

The ACCC advises consumers to verify business names on the Australian Business Register and to use reverse image searches to check product authenticity. Consumers are also encouraged to report ghost stores to platforms like Facebook, Google, and ScamWatch, and to contact their bank if they have made a purchase.

"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," said Lowe. "The websites often use a similar format to many other online stores, advertising high-quality boutique clothing at heavily discounted prices. However, when the product arrives in the mail, consumers report receiving cheap, mass-produced products that have been sold at an inflated price and do not fit their advertised quality or description."

"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," Lowe stated.

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