Cosette cleared of fake designer bag complaints
Luxe small business Cosette was almost brought to its knees by 1079 incorrect claims they sold fake designer bags. Cosette has been vindicated, and online “authenticators” are now under scrutiny.
NSW
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A small business importing designer goods from Europe was almost completely decimated by hundreds of misguided accusations they were selling fakes – by nameless people overseas who had paid $79 to become a “Gucci authenticator”.
Cosette had been described as a “luxury mega store” in breathless media reports revealing it was facing more than 1000 complaints to NSW Fair Trading they had been selling convincing fake designer handbags.
In reality, the small business, which legitimately imported legitimate luxury items from Europe, was being pummelled with extreme vitriol on its shop floor and online over alleged misdeeds they had never committed.
The Daily Telegraph recently revealed NSW Fair Trading had completely vindicated Cosette after going to the top of the world’s most exclusive luxury brands to confirm all 1079 complaints about supposedly fake bags were utterly false.
“NSW Fair Trading worked directly with overseas luxury brands, including Prada, Burberry, Yves Saint Laurent, Gucci and Balenciaga to test the authenticity of Cosette’s handbags and accessories,” a NSW Fair Trading spokesman said.
“Our investigation found no evidence to support allegations the designer handbags sold by Cosette are fake. Each item was tested and verified as authentic by the brand.”
Customers used third party online authenticators to assess their bags, who in many cases provided certificates deeming the bags to be fakes.
The Daily Telegraph has seen some of the certificates, complete with clip art stamps and disclaimers saying the overseas companies bore no liability if their assessments were wrong.
“In some instances, the luxury brand confirmed the authenticity of handbags that multiple online authenticators had advised customers were fake,” the NSW Fair Trading spokesman continued.
“The investigation highlights that there are significant issues with the accuracy and reliability of online authenticators, who use AI and algorithms to provide authentications.”
A Cosette director showed The Daily Telegraph a Gucci bag which was deemed the real deal by the label – but deemed a fake by an authenticator.
“There are issues with these authenticators’ reference databases – the brands will tweak a zipper or a detail each season to make an item more contemporary,” the director said.
“(One authenticator business) offers a course, and for $79 USD and two hours of online training you can become a Gucci authenticator.”
These shadowy overseas figures, assessing grainy pictures of bags or using AI with outdated databases after two hours of online training in Gucci authentication, unleashed a world of pain on Cosette.
The business went from 25 staff to 10 in the wake of the hit.
They opted not to renew the lease on their store in The Rocks due to their commercial uncertainty, and partners including Qantas Marketplace, Afterpay, and even a cancer charity walked away during the media storm.
The chief financial officer became an overnight expert in the NSW Civil and Administrative Tribunal after handling an avalanche of consumer claims for refunds – 86 of which were dismissed in their favour, and nine of which remain outstanding.
Incoming director and business adviser Don Grover – who has worked as an executive across major brands including David Jones and Dymocks for decades – said it was impossible to quantify the hit to their reputation.
“It’s exactly like a witch hunt,” Mr Grover said.
“I’ve never seen anything like it”
Cosette offered NSW Fair Trading all 1079 bags subject to complaints for assessment, such was their conviction they simply had nothing to hide.
The business can offer competitive prices on designer bags through the parallel importing system, where they buy excess genuine luxury stock from European retailers – which once would have been destroyed rather than discounted to preserve the brand’s exclusivity – and set their own prices.
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