Australia: Competition and Consumer Commission issued public warning notices against online ghost stores for misleading consumers by drop-shipping

On 3 July 2025, the Australian Competition and Consumer Commission (ACCC) issued public warning notices against the operators of four online retail websites, including everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com, and doublebayboutique.com. The notices were issued for misleading Australian consumers by falsely claiming to be local businesses, while instead drop-shipping low-quality products from overseas. It was highlighted that the ACCC received at least 360 reports since January 2025 on similar deceptive practices. The ACCC alleges these 'ghost stores' use emotional marketing, Artificial Intelligence (AI) generated images, false local backstories, and inadequate contact or return information to mislead shoppers, while also calling on Meta Platforms and Shopify to take action. Consumers were urged to remain cautious, verify business legitimacy, and report suspected ghost stores to the ACCC.