No case to answer: Cosette cleared of claims it sold designer fakes

Australian discount luxury clothing and accessories store Cosette has been cleared of allegations it sold designer fakes after a year-long investigation that examined more than 1000 complaints.

On Tuesday, NSW Fair Trading concluded its probe into the company, which says it sources authentic designer bags from European suppliers under parallel importing arrangements. The investigation stemmed from complaints made by Cosette customers, who alleged bags sold by the company were fake after having them inspected by independent experts.

Cosette has been cleared by NSW Fair Trading of allegations it sold fake designer bags.Credit: Oscar Colman

In a statement, Cosette said it was vindicated by the outcome of the investigation, which had “a detrimental impact on our business and, more importantly, our customers, who were wrongly led to believe that some of their products … were not genuine”.

Cosette customers, including one who founded a Facebook group for affected clients, were disappointed with the outcome, saying they stood by their complaints.

Brisbane sales manager Fleur Sharpe said she was angered by the outcome.

Cosette customer Fleur Sharpe is standing by her claims she was sold a bag that failed authentication tests.

Sharpe filmed herself taking her Saint Laurent bag to the brand’s Brisbane store to be checked.

“I could easily document the differences – you will never tell me that bag wasn’t fake,” she said.

Cosette’s statement also took aim at luxury authenticators, despite the company having used them to verify the authenticity of its products. It said the NSW Civil and Administrative Tribunal – which adjudicated over several claims between Cosette and customers – found independent authenticators provided “no evidence of specific qualifications, skills or knowledge” in providing their opinion.

Several authenticators contacted by this masthead confirmed Cosette had used their services.

Jane Thompson, owner of Sydney luxury consignment store Blue Spinach, says it’s important the investigation’s outcome doesn’t diminish the value of third-party authenticators, which have “revolutionised the resale industry”.

“These advanced tools are crucial in adding another layer of accuracy and trust for both preloved and end-of-season overstock items,” she said. “[Cosette’s] statements [about authenticators] seem at odds with their own reliance on these services.”

NSW Fair Trading said it had completed a thorough investigation into all 1079 complaints against Cosette, including sending a sample of bags to Europe for authentication by some of the world’s leading luxury brands, such as Prada and Burberry.

“Each item was tested and verified as authentic by the brand,” a Fair Trading spokesperson said. “In some instances, the luxury brand confirmed the authenticity of handbags that multiple online authenticators had advised customers were fake.”

Sharpe, who obtained a refund from Cosette – which the company stressed was not an admission of guilt – said she felt for any customers still in limbo.

“People see they can buy their dream bag for hundreds less, and you trust [the seller], and then if it’s allegedly fake, it’s devastating. I was lucky I got noisy about it early … there are so many people out there who are still unsure, and there’s no recourse.”

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