AUSTRALIA | The ACCC is warning consumers about the operators of four websites allegedly misrepresenting themselves as local businesses, also known as ‘ghost stores’.
It is alleged that these four ghost store operators are harming consumers by making false representations that they are local Australian businesses, are imminently closing down, and are selling high-quality clothing and footwear products, when in fact they are based overseas, not imminently closing down, and are drop-shipping low-quality products.
The ACCC has issued Public Warning Notices to warn consumers about specific conduct by the operators of the following four websites: everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com and doublebayboutique.com.
“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.
“We further allege that the operators of these websites are supplying products which are not of the advertised quality.”
The ACCC’s Public Warning Notices follow an increase in consumer reports to the ACCC in recent months about online ghost stores. Since the start of 2025, the ACCC estimates that it has received at least 360 reports about 60 online retailers, although media reports suggest that many more may be in operation.
The ACCC is concerned that, beyond these four websites, this type of conduct appears to be widespread, and that numerous other online ghost stores are in operation, falsely claiming to be local boutiques and supplying substandard products.
The ACCC is also aware of complaints about ghost stores refusing to provide refunds, or only offering partial refunds, to consumers who have complained about the inferior quality of the goods compared to the advertised descriptions, or not responding to complaints at all.
Ghost stores have been known to target consumers through social media ads and often tend to close and rebrand under new names, using different Australian suburbs, towns, or cities in their names to appear ‘local’.
“We urge all Australians to think twice before clicking on ads they see on social media which claim to be from a boutique business based in a local town or city. 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,” added Lowe.
“They will claim they are having a ‘closing down sale’ as a result, with all stock heavily discounted and available on a minimal basis. 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.”
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.
The ACCC understands ghost stores use targeted paid advertisements on social media sites such as Facebook and Instagram, and often appear to use the Shopify e-commerce platform to host and operate their web stores.
“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. 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.”
The ACCC is urging consumers to check the business name on the Australian Business Register lookup and to use reverse image or ‘Google Lens’ searches of product photos on the website to see if they have been taken from another site.
Consumers should also verify that the store is listed in a local business directory for the location it claims to be in, or search for the business name in a search engine and read reviews from other consumers. They can also leave a negative review on the business’ Facebook page or a review site like Trustpilot.
Where consumers have accessed the websites via social media ads, they can make a complaint directly to the relevant platform. For example, complaints can be made to Facebook and should include a screenshot of the store ad and/or page. Additionally, if Shopify hosts the website, the merchant can be reported.
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.
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