ACCC issues public warnings about four websites allegedly drop-shipping low-quality products while claiming to be closing down
Australians are increasingly falling victim to sophisticated online shopping scams known as “ghost stores”: fake websites designed to look like legitimate retailers, often selling high-end fashion at attractive prices. These sites are powered by AI, built to mimic genuine e-commerce platforms with polished branding, glowing fake reviews, and seamless checkout experiences.
But behind the façade, there’s no real business- just scammers taking money and leaving consumers with the wrong item, counterfeit goods, or nothing at all. The Australian Competition and Consumer Commission has flagged this as a growing concern, warning that scammers are becoming harder to spot, even for the most tech-savvy shoppers.
The ACCC has issued Public Warning Notices for four specific websites – everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com and doublebayboutique.com – which allegedly misrepresent themselves as local Australian businesses facing imminent closure.
The consumer watchdog estimates it has received at least 360 reports about 60 online retailers since the start of 2025, though media reports suggest many more so-called “ghost stores” may be operating across Australia.
Emotional manipulation targets local business supporters
These deceptive operations typically exploit consumers’ desire to support local businesses by creating fabricated backstories about financial hardship and urgent closing-down sales.
“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. “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 scam preys on consumer empathy while creating false urgency through claims that sales “end tonight” or stock is extremely limited. However, when products arrive, customers report receiving cheap, mass-produced items that bear no resemblance to the high-quality boutique clothing advertised.
The ACCC alleges these operators are “supplying products which are not of the advertised quality,” with consumers reporting significant disparities between marketing promises and actual deliveries.
“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,” Lowe explained.
Adding insult to injury, ghost stores frequently refuse to provide refunds or offer only partial refunds to disappointed customers, with some requiring expensive return shipping to overseas warehouses.
Red flags help identify fake stores
The ACCC has identified several warning signs that can help consumers spot ghost stores before making purchases:
Domain and Location Inconsistencies: Stores claiming to be Australian but using .com rather than .com.au domains, or requiring returns to overseas warehouses despite claiming local operations.
Suspicious Business Information: Websites lacking Australian Business Numbers (ABN) or Australian Company Numbers (ACN), no physical addresses or phone numbers, and terms of service referencing international rather than Australian laws.
Fake Reviews and Images: AI-generated owner photos, stolen product images from other websites, and exclusively positive reviews on their own sites while negative reviews appear on independent platforms like Trustpilot.
Social Media Patterns: Recently created Facebook pages with negative reviews or reactions, and targeted advertising claiming urgent closing-down sales.
The ACCC has contacted both Meta Platforms (owner of Facebook and Instagram) and Shopify requesting they scrutinize and take action against ghost store operators who use their platforms.
“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 commonly use targeted paid advertisements on social media platforms and frequently operate through Shopify’s e-commerce platform, making platform cooperation crucial for addressing the problem.
Screenshots of the websites referred to in the public warning notices
Financial protection available for victims
While consumers face increasing sophistication in these scams, payment providers are stepping up protection measures. The financial services sector has recognized the evolving threat and implemented stronger safeguards for affected customers.
“Fraud and scams are constantly evolving, and ghost stores are just the latest example of how bad actors adapt to exploit trust,” said Martyna Lazar, Head of Risk, Visa Australia, New Zealand and South Pacific. “While it’s important for consumers to stay alert and do their due diligence, Visa cardholders have access to strong protections if they’ve mistakenly engaged with such stores. Any Visa cardholders affected can raise a dispute for undelivered goods via their bank, and our chargeback process can help them recover their funds.”
The payment industry is also taking proactive steps to combat these sophisticated operations before they can harm consumers.
“Visa operates on trust, and we’re committed to protecting consumers on both fronts – by proactively identifying and dismantling scam networks, and by supporting cardholders with strong protections if things go wrong,” Lazar explained. “In 2024 alone, our Scam Disruption Practice prevented over $350 million in fraud through advanced AI and close collaboration with industry partners.”
Consumer protection advice
For consumers who suspect they’ve encountered a ghost store, the ACCC recommends several immediate actions:
- Contact banks or payment providers immediately to stop transactions or reverse charges
- Use reverse image searches on product photos to check if they’ve been stolen from other websites
- Verify business registration through the Australian Business Register lookup
- Check independent review platforms rather than relying solely on website testimonials
- Report suspicious websites to relevant platforms, Google, and the ACCC
The consumer watchdog emphasises that this type of deceptive conduct appears widespread, with many more ghost stores likely operating beyond the four specifically named in the public warnings.
The website can be reported to Google to have it delisted, and a report can also be made to the ACCC. Consumers can also report websites to ScamWatch.
This article contains information based on public warnings issued by the ACCC. It is intended for consumer awareness and does not constitute legal or financial advice. Readers should verify details independently and report suspected scams to the ACCC.
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