Local fashion label Everly Collective recently found itself caught in a web of confusion and misleading claims when the Australian Competition and Consumer Commission (ACCC) sounded the alarm about several ‘ghost stores’. Among them was Everly Melbourne, a website accused of masquerading as a local business when, in fact, it wasn’t based where it claimed to be.
In response to these allegations, Everly Collective made a clear statement emphasizing its independence from Everly Melbourne:
“We are a completely separate entity registered in Australia.”
The brand sought to reassure customers who may have been misled by the similarities in names that they operate autonomously and uphold high standards of quality and service. This incident underscores the importance for consumers to be vigilant and discerning when engaging with online businesses.
The ACCC issued warnings about multiple websites purporting false affiliations with locations like Melbourne, Adelaide, and Sydney’s upscale Double Bay. These ‘ghost stores’ were accused of drop-shipping substandard products while fabricating emotional narratives to manipulate consumer sympathies. ACCC deputy chair Catriona Lowe cautioned shoppers against falling for such tactics:
“Often ghost stores will share an emotional story… creating a false sense of urgency.”
Furthermore, signs were highlighted that could help identify deceptive online retailers: AI-generated images or URLs ending in ‘.com’ for allegedly Australian-based businesses were red flags. Consumers were advised to scrutinize return policies, contact details clarity, image authenticity, and presence of legal disclosures on websites before making purchases.
The prevalence of ‘ghost stores’, camouflaging themselves as local businesses on social media platforms like Facebook and Instagram has raised concerns. These entities often leverage e-commerce channels such as Shopify for credibility. The ACCC has engaged companies like Meta Platforms (owner of Facebook) and Shopify to crack down on such deceptive practices.
This case isn’t isolated; previous instances like Meg’s Flowers falsely claiming locality led to substantial penalties after being exposed by the ACCC. Similarly, Australian fashion label Gorman faced copycat challenges that prompted swift legal action to protect its brand integrity.
In an era where digital copycats blur lines between authenticity and deception, consumers must exercise caution while navigating online shopping landscapes. Being informed about warning signs can shield individuals from falling prey to elaborate ruses engineered by unethical operators posing as legitimate businesses.
Staying vigilant against such deceptive practices is crucial for safeguarding consumer interests in an increasingly complex digital marketplace interconnected through various e-commerce platforms and social media channels.
Leave feedback about this