ACCC shuts down clothing website in international sting

The Australian Competition and Consumer Commission has frozen and suspended the assets and operations of a clothing retail website following complaints from customers.

The Australian Competition and Consumer Commission has frozen and suspended the assets and operations of a clothing retail website following complaints from customers.

The ACCC obtained injunctions in the Federal Court last Friday against www.designerbrandoutlet.com, and its operators Bindert Kloosterman and Xin Fang Shi.

In a statement, the ACCC says allegations included that “false, misleading and deceptive representations” were made to customers, including leading them to believe counterfeit copies of clothes were produced by designer labels.

The ACCC obtained injunctions from the Federal Court to prevent Kloosterman and Shi from “engaging in conduct of the kind alleged in the proceedings on any website”.

The matter was actually brought to the ACCC’s attention by the US Federal Trade Commission, after complaints were received from the International Consumer Protection and Enforcement Network.

“The ACCC has also received cooperation from a major bank and the domain name registrar in relation to suspending the activities of the online trader,” the statement says.

The designerbrandoutlet.com website has also been investigated by the bank holding its credit card merchant facility, and after being advised by the ACCC, conducted investigations which led to suspending the site’s operations.

The matter is to be brought to the Federal Court in Sydney on 16 September.

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