The Australian Competition and Consumer Commission (ACCC) has issued public warnings about a group of online retailers alleged to be falsely presenting themselves as local Australian businesses.
The sites in question – everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com, and doublebayboutique.com – are said to be operating from overseas while marketing themselves as local outlets facing imminent closure.
According to the ACCC, these businesses are not located in the cities referenced in their names, nor are they winding down operations as advertised.
Instead, the commission alleges that the operators are shipping goods of lower quality than what is promoted on their websites.
“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 ACCC deputy chair Catriona Lowe.
Lowe added that the products received by consumers often do not match the quality described online.
The regulatory action follows a notable increase in complaints from consumers regarding online retailers using deceptive tactics.
Since January 2025, the ACCC has received more than 350 reports involving approximately 60 online stores.
The commission believes the actual number of such sites may be higher, as media coverage suggests many more may be operating under similar pretences.
The ACCC has also received reports of consumers being denied refunds, offered only partial compensation, or receiving no response to complaints about product quality.
These online stores frequently use social media platforms to target Australian shoppers and may change names or rebrand to avoid detection, often adopting the names of Australian suburbs or cities to appear legitimate.
Ghost stores typically use marketing strategies that appeal to consumers’ desire to support local businesses. These sites often claim to be small, independent retailers forced to close due to financial hardship and promote time-limited clearance sales with significant discounts.
The ACCC noted that while these websites may resemble legitimate online stores, customers often report receiving products that are mass-produced, do not match the advertised descriptions, and are sold at inflated prices.
Some of these stores use names similar to established local businesses, which can cause confusion and potential harm to legitimate retailers.
The ACCC has identified that many of these sites rely on paid advertising on platforms such as Facebook and Instagram and frequently use the Shopify platform to operate their online storefronts.
The ACCC has contacted Meta Platforms, which owns Facebook and Instagram, as well as Shopify, requesting that they review and act against operators of ghost stores.
The commission aims to raise awareness among consumers and help them identify and avoid misleading online businesses.
The ACCC has outlined several warning signs that may indicate an online retailer is a ghost store:
The ACCC recommends verifying business names through the Australian Business Register and using reverse image searches to check product photos.
Consumers are also encouraged to consult local business directories and independent review platforms before making purchases. Relying solely on website reviews is discouraged.
If a consumer suspects they have purchased from a ghost store, the ACCC advises contacting their bank or payment provider to attempt to reverse the transaction.
Complaints can also be lodged with social media platforms, Google, the ACCC, or ScamWatch, and negative reviews can be posted on independent sites.
This warning follows recent alerts from the ACCC and the National Anti-Scam Centre regarding scams involving caller ID spoofing and impersonation of ACCC staff. The commission clarified that it does not request sensitive information through unsolicited communications and encourages consumers to verify any suspicious contact directly.