Fashion crimes on the internet

Theconsumer watchdog is cracking down on internet fashion and beauty scams, urging people who have been ripped off to make a formal complaint.

In a recent case, the Australian Competition and Consumer Commission secured compensation for customers who bought what they thought were genuine designer clothes online only to receive fake items, or no goods at all.

The website, Designer Brand Outlet, attracted a flurry of complaints on internet chat forums, including this statement from an angry customer: "The website looks so official and reassuring to a nervous internet buyer like myself and I am so, so disappointed and annoyed with myself that I have been scammed."

Late last year, the Federal Court found that the operators, Ben Kloosterman and Lucy Shi, had made false, misleading and deceptive representations on the website www.designerbrandoutlet.com. The company claimed to be based in Australia, but its operators lived in China.

The commission's deputy chairman, Peter Kell, said the matter was brought to its attention by the US Federal Trade Commission after complaints about other fashion websites.

"This is an important case for the ACCC because, as a website, it affected consumers in Australia and overseas," Mr Kell said.

"It is an interesting example of how consumers are increasingly operating in a global world, especially online."

Kloosterman and Shi settled a claim for compensation last month after agreeing to pay out a total of $21,000.

Only customers who provided the commission with an admissible affidavit will be eligible for a refund.

Other recent cases include:
- A Hobart man with mental and physical disabilities was awarded $10,000 in damages and a refund of his $1800 deposit for hair replacement treatment after the business told him he could not get out of the $15,500 contract.

- A cosmetics company agreed to refund customers, relabel its products and publish notices in newspapers, magazines, shops and online after the commission investigated incorrect labelling on Natural Instinct and Organic Instinct products.

The regulator was also concerned about statements made about the products, including that they were "made with/from 100 per cent pure oils and certified organic herbs" because of the tiny concentrations involved.

A spokeswoman for Natural Instinct said that previous management was responsible for some of the mistakes.