NSW Fair Trading has received 296 complaints against luxury retailer Cosette since July 24, following media allegations it sold fake handbags.
The affected merchandise in complaints totals a purchase value of more than $630,000.
NSW Fair Trading has launched an investigation into the matter and confirmed it will liaise with other agencies if possible.
In a comment to Ragtrader, NSW Fair Trading confirmed that inspectors visited a Cosette warehouse site in Sydney on July 26 this year.
“NSW Fair Trading carefully assesses complaints received to determine if action is required against a trader. If Fair Trading legislation has been breached, the most appropriate action will be determined.”
According to the consumer rights organisation, this may include educational advice, warnings, penalty notices or prosecution action.
Companies who misrepresent the authenticity of products can be charged $50 million or 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.
“Due to the significant volume of complaints, NSW Fair Trading has provided complaint volumes for publication as part of this media response to help warn customers.”
The organisation’s Complaints Register is published monthly, with complaint data for July being published this month. Cosette will appear on the Register.
Under Australian Consumer Law, a consumer is entitled to a refund if goods have been misrepresented, including when fake products are represented as genuine, the spokesperson said.
Consumers who have purchased from Cosette are encouraged to lodge a complaint via NSW Fair Trading online.
In a statement to Ragtrader, Cosette denied claims about its operations in mainstream media. The company reported that all products sold are genuine and subject to stringent quality control and third-party authentication.
"If we were ever unsatisfied with the genuineness of any product, it would not be sold to customers.
"Cosette sources all handbags from authorised and reputable resellers, retailers, brokers and licensees in Europe.
"If a customer is concerned with the authenticity of any product sold by Cosette, we encourage them to contact us. Cosette will arrange for a return of the product and reauthentication. If Cosette finds any product to be non-genuine after reauthentication, the customer will be refunded fully.
"With respect to the claims in the media, all product was authenticated prior to being sold and, where customers have raised any concerns, is being re-authenticated.
"To date, all concerns have been unfounded and no bags have been found to be non-genuine on re-authentication.”