Australians are being advised to exercise caution when shopping online, as the Australian Competition and Consumer Commission (ACCC) has raised concerns about certain websites operating as “ghost stores.” These sites affect consumers by posing as local Australian retailers nearing closure, while in reality, they are offshore businesses promoting low-quality goods through deceptive practices.
The ACCC has identified four specific websites—everly-melbourne.com, willowandgrade-adelaide.com, sophie-claire.com, and doublebayboutique.com—that allegedly misrepresent themselves as local boutiques offering high-quality clothing and footwear. According to ACCC deputy chair Catriona Lowe, these operations are not based in their advertised cities and are not shutting down as claimed. Instead, they engage in drop-shipping low-quality items that do not match the quality advertised to consumers.
In recent months, consumer complaints about online ghost stores have surged, with the ACCC documenting over 360 reports concerning around 60 problematic retailers since early 2023. These ghost stores often utilise social media advertising, creating emotional narratives about being small, local businesses needing to liquidate stock at discounted prices due to financial difficulties. They also frequently close and rebrand under new names, often mimicking genuine local boutiques, which can harm the reputation and competitiveness of legitimate businesses.
To combat this issue, the ACCC has reached out to social media platform Meta and e-commerce provider Shopify, urging them to take action against those operating ghost stores. Lowe emphasises the importance of increasing consumer awareness to help Australians recognise these deceptive businesses and avoid purchasing substandard products.
Shoppers are encouraged to be wary of ads that claim to feature local business sales, particularly those using closing-down sales as an angle. Ghost stores are known for deceptive marketing tactics, including the use of imposter names and location-based branding to appear legitimate.
More guidance on identifying potential ghost stores can be found on the ACCC website, where consumers can learn how to protect themselves from falling victim to these fraud schemes.