Ghost store operators are misleading Aussie consumers by falsely claiming there are locally based and about to close down to rope them into buying their products.
The ACCC is warning consumers about the operators of four websites allegedly misrepresenting themselves as local businesses, also known as ‘ghost stores’, including 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,” ACCC deputy chair Catriona Lowe says.
“We further allege that the operators of these websites are supplying products which are not of the advertised quality.”
Indeed, it is alleged these four ghost store operators are making false representations that they are local Australian businesses, imminently closing down and selling high-quality clothing and footwear products, when they are instead based overseas, not imminently closing down and are drop-shipping low-quality products.
Ghost stores have been known to target consumers through social media ads and also tend to close and rebrand under new names, often 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.”
Since the start of 2025, the ACCC estimates it has received at least 360 reports about 60 online retailers, though media reports suggest 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 there are many other online ghost stores in operation that may also be falsely claiming to be local boutiques and supplying poor quality products.
“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,” adds Lowe.
“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.”
