How ‘Ghost Stores’ Are Scamming Aussie Consumers — And What Your Business Can Learn From It

Published: 3 July 2025 | Source: ACCC Public Warning Notice

If your business sells products online — or you’re a bricks-and-mortar boutique with an online store — you’ll want to take note of a serious warning from the ACCC.

This week, the ACCC issued Public Warning Notices against four websites falsely claiming to be Australian-based retailers. Known as “ghost stores”, these websites pretend to be local boutiques with urgent “closing down” sales, when in fact, they’re overseas operators drop-shipping low-quality goods to unsuspecting Aussie shoppers.

The targeted websites are:

• everly-melbourne.com

• willowandgrace-adelaide.com

• sophie-claire.com

• doublebayboutique.com

What Are Ghost Stores?

Ghost stores are fake online retailers that mislead consumers into thinking they’re supporting a small, local business — often with a heartfelt backstory and a “limited-time closing down” sale. They advertise high-end fashion at steep discounts, but what shows up in the mail is often poorly made, mass-produced clothing that looks nothing like what was promised.

Some even use names eerily similar to real Australian boutiques, causing confusion and damage to legitimate businesses.

According to the ACCC, these operators:

• Misrepresent themselves as being based in cities like Melbourne, Adelaide, or Double Bay

• Claim to be shutting down for emotional or financial reasons

• Use AI-generated images of “store owners” and fake positive reviews

• Avoid listing a phone number, ABN/ACN, or local returns address

• Route refunds through overseas warehouses (if they offer refunds at all)

The consumer watchdog estimates it’s received at least 360 complaints about 60 ghost stores since January 2025 — and that’s just the tip of the iceberg.

Why This Matters to Legitimate Aussie Businesses

Aside from duping consumers, ghost stores create unfair competition and reputational harm for honest Australian retailers. Imagine your genuine boutique in Double Bay being mistaken for one of these fake stores. You could lose customer trust overnight.

These scam sites also erode public confidence in eCommerce generally — which affects everyone doing business online.

How to Spot a Ghost Store

The ACCC has outlined some key red flags:

• Domain ends in .com instead of .com.au

• No ABN, physical address, or phone number listed

• Emotional “store closing” narrative and urgency tactics

• AI-generated images or stock photos stolen from other sites

• Terms of Service mention non-Australian laws

• Returns must go to an overseas address

• Suspiciously new Facebook page with negative reactions

For consumers, the ACCC recommends checking the ABN Lookup, doing a reverse image search using Google Lens, and reading independent reviews on Trustpilot or Google — not just the testimonials on the retailer’s own website.

What If You’ve Been Caught Out?

If you or someone you know has purchased from one of these ghost stores:

• Contact your bank or payment provider immediately

• Report the store to Facebook, Instagram, Shopify, Google, and ScamWatch

• Submit a formal report to the ACCC

• Leave a factual review to warn others

Business Takeaway: Be Proactive with Your Online Reputation

If you operate a legitimate online business — especially in retail fashion — this is a timely reminder to:

• Clearly display your ABN, returns policy, and local contact details

• Invest in brand protection strategies (e.g. monitoring for impersonators)

• Set up Google Alerts for your brand name to catch potential copycats

• Consider speaking to a commercial lawyer about protecting your IP and trademarks

Need Legal Help to Protect Your Brand or Business?

At Bane Legal Services, we don’t offer legal advice — but we know which commercial lawyers do. With 30+ years of business experience behind us, we connect business owners with trusted, independent lawyers who understand eCommerce, IP protection, and consumer law compliance.

Think you need legal advice? We’ll help you find the right lawyer — first time, every time.

Source:

Australian Competition and Consumer Commission (ACCC), Media release dated 3 July 2025: Consumers warned about ghost stores imitating Australian businesses