Fake closing-down sales by ‘ghost stores’ spark consumer warnings
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Online shopping has become second nature for many, offering comfort and convenience at our fingertips.
But hidden behind tempting sales and emotional stories is a growing form of deception.
So-called 'ghost stores' are creating convincing facades, drawing in unsuspecting shoppers with messages that aren’t always what they seem.
The 'ghost store' phenomenon has caught the attention of consumers and regulators alike, with reports of these dubious online retailers popping up on social media feeds.
They often begin with a sorrowful announcement of a local boutique's imminent closure, complete with a backstory of owners wanting to retire or spend more time with family.
The narrative is designed to evoke sympathy and urgency, prompting shoppers to take advantage of 'big sales and exclusive discounts.'
Yet, upon investigation, it becomes clear that these stores, like the fictitious Maison Canberra, have no physical presence or legitimate business history.
A domain search can quickly reveal the recent registration of these websites, and social media pages for these stores often sprout up just days before the ads begin to circulate.
The lack of an Australian Business Number (ABN) or registered company name is another red flag that these stores may not be what they seem.
The Australian Competition and Consumer Commission (ACCC) has noted an uptick in complaints about such operations, indicating that the problem is more widespread than we might hope.
The emotional appeal of these ghost stores is a calculated move, with names like Cooper & Ellis, Molly-Smith, Julie Melbourne, and Syd Collective cropping up and claiming years of local service and community ties.
Yet, their stories are fabrications, their 'closing down' sales are perpetual, and their products are often shipped from overseas warehouses, far removed from the Australian locales they claim to represent.
The Consumer Policy Research Centre has warned that making false claims about business operations and sales could breach Australian consumer law.
'Companies cannot lie to their customers,' Chief Executive Erin Turner said.
'This includes lying about the location of their operations, fake closing-down sales or using images of fake owners to create a sense that the business is legitimate.'
Items like the 'Andrine™ Casual Sweatshirt and Dress Set' sold by Maison Canberra for $79.95, purportedly discounted from $269.95, can be found on international marketplaces like AliExpress for a fraction of the price.
This raises questions about the authenticity of the discounts and the original pricing.
The ACCC is investigating these ghost stores, but enforcement of Australian consumer law can be challenging when the operators are based overseas.
Social media platforms, which host the ads for these stores, have a responsibility to vet the legitimacy of businesses advertising on their sites.
However, using AI-generated images and cleverly crafted narratives makes it difficult for consumers and regulators to discern the truth.
'The issue is that they’re saying they’re discounting it from a storefront, and there is no storefront, which means there is no real discount,' Prof Jeannie Paterson, the co-director of the University of Melbourne’s Centre for AI and Digital Ethics, said.
'This is close to a scam.'
By staying vigilant and informed, we can all enjoy the benefits of online shopping without falling prey to the deceptive practices of ghost stores.
Remember, if a deal seems too good to be true, it's worth taking a moment to investigate further. Your wallet and peace of mind will thank you.
Have you ever encountered a deal online that seemed too good to be true? How did you verify if the store was legitimate? What steps do you take to ensure you're shopping from trusted and established online retailers? Let us know in the comments below.
But hidden behind tempting sales and emotional stories is a growing form of deception.
So-called 'ghost stores' are creating convincing facades, drawing in unsuspecting shoppers with messages that aren’t always what they seem.
The 'ghost store' phenomenon has caught the attention of consumers and regulators alike, with reports of these dubious online retailers popping up on social media feeds.
They often begin with a sorrowful announcement of a local boutique's imminent closure, complete with a backstory of owners wanting to retire or spend more time with family.
The narrative is designed to evoke sympathy and urgency, prompting shoppers to take advantage of 'big sales and exclusive discounts.'
'Ghost stores' are online retailers that falsely claim to be closing physical shops and use emotional ads to lure customers. Credit: AI
Yet, upon investigation, it becomes clear that these stores, like the fictitious Maison Canberra, have no physical presence or legitimate business history.
A domain search can quickly reveal the recent registration of these websites, and social media pages for these stores often sprout up just days before the ads begin to circulate.
The lack of an Australian Business Number (ABN) or registered company name is another red flag that these stores may not be what they seem.
The emotional appeal of these ghost stores is a calculated move, with names like Cooper & Ellis, Molly-Smith, Julie Melbourne, and Syd Collective cropping up and claiming years of local service and community ties.
Yet, their stories are fabrications, their 'closing down' sales are perpetual, and their products are often shipped from overseas warehouses, far removed from the Australian locales they claim to represent.
The Consumer Policy Research Centre has warned that making false claims about business operations and sales could breach Australian consumer law.
'Companies cannot lie to their customers,' Chief Executive Erin Turner said.
'This includes lying about the location of their operations, fake closing-down sales or using images of fake owners to create a sense that the business is legitimate.'
Items like the 'Andrine™ Casual Sweatshirt and Dress Set' sold by Maison Canberra for $79.95, purportedly discounted from $269.95, can be found on international marketplaces like AliExpress for a fraction of the price.
This raises questions about the authenticity of the discounts and the original pricing.
The ACCC is investigating these ghost stores, but enforcement of Australian consumer law can be challenging when the operators are based overseas.
Social media platforms, which host the ads for these stores, have a responsibility to vet the legitimacy of businesses advertising on their sites.
However, using AI-generated images and cleverly crafted narratives makes it difficult for consumers and regulators to discern the truth.
'The issue is that they’re saying they’re discounting it from a storefront, and there is no storefront, which means there is no real discount,' Prof Jeannie Paterson, the co-director of the University of Melbourne’s Centre for AI and Digital Ethics, said.
'This is close to a scam.'
By staying vigilant and informed, we can all enjoy the benefits of online shopping without falling prey to the deceptive practices of ghost stores.
Remember, if a deal seems too good to be true, it's worth taking a moment to investigate further. Your wallet and peace of mind will thank you.
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