Twist after luxury retailer accused of selling fake designer handbags

An Australian luxury goods retailer has been cleared of more than 1000 customer complaints it had sold them “superfake” designer handbags.

An Australian luxury goods retailer has been cleared of more than 1000 customer complaints it had sold them “superfake” designer handbags.

NSW Fair Trading launched a year-long investigation into the authenticity of goods supplied by Cosette, which has an online store and boutique in The Rocks, in Sydney, after consumer claims last July it had unwittingly sold them counterfeit products.

Speaking to The Sydney Morning Herald at the time, a number of shoppers accused Cosette of selling them “superfake” bags – high-quality copies of designer goods that are harder to differentiate from the real thing – after having them inspected by independent experts.

The business, which has been operating since 2015, repeatedly denied the allegations, saying they stemmed from third-party authenticators who provided customers with “inaccurate and misleading services”.

After working directly with overseas luxury brands including Prada, Burberry, and the Kering group (which owns Gucci, Balenciaga and Saint Laurent) to test the authenticity of Cosette’s products, NSW Fair Trading confirmed all complaints against the retailer have been tossed out.

Cosette has been cleared of more than 1000 customer complaints it had sold them ‘superfake’ designer handbags. Picture: Supplied

“Our investigation found no evidence to support allegations that the designer handbags sold by Cosette are fake – each item was tested and verified as authentic by the brand,” a NSW Fair Trading spokesperson said.

“In some instances, the luxury brand confirmed the authenticity of handbags that multiple online authenticators had advised customers were fake.”

The spokesperson said the Fair Trading investigation “highlights that there are significant issues with the accuracy and reliability of online authenticators”, adding that some rely on “AI and algorithms to provide authentications”.

The NSW Civil and Administrative Tribunal (NCAT) found these authenticators provided “no evidence of specific qualifications, skills or knowledge” in giving their opinion, “do not warrant … the quality of any services” that they provide, nor are they recognised by the luxury brands that they purport to authenticate.

Cosette said in a statement the findings of the investigation “vindicate” its “repeated statements on the quality and authenticity of goods sold”, adding that the unfounded allegations had “a detrimental impact on our business, and, more importantly, our customers”.

“In our near 10 years of operation, Cosette has served more than 130,000 customers and we look forward to returning our focus to ensuring that our customers have the choice and first-class shopping experience that we have always promised,” Cosette spokesperson Don Grover said.

“Cosette is the best place in Australia to buy genuine luxury goods at the most affordable prices.”

Bikini mogul Tash Oakley, in a photo shared to Cosette’s Instagram account. Picture: Instagram

Influencer Harmony Butcher, in a photo shared to Cosette’s Instagram account. Picture: Instagram

Marketing itself as “your new best friend in fashion”, Cosette says it sources authentic designer bags at a discounted price from European retailers and suppliers by taking advantage of parallel importing arrangements.

“Some of these products may be overstock, but they are always new (never used or pre-owned), authentic and therefore of the highest quality,” it said.

“This direct sourcing means that we are able to share the benefit of any pricing advantage we obtain with Australian customers.”

Under Australian law, companies that misrepresent the authenticity of products can face hefty penalties of whichever is greater – $50 million, three times the value of the benefit received, or 30 per cent of annual turnover in the preceding year (if the court cannot determine the benefit obtained from the offence).

Originally published as Twist after luxury retailer accused of selling fake designer handbags