A year-long investigation by NSW Fair Trading regarding more than a thousand counterfeit claims lobbed against luxury retailer Cosette has concluded with no adverse findings.
NSW Fair Trading confirmed the news with Ragtrader, adding it had received and assessed 1,079 consumer complaints and worked directly with overseas luxury brands including Prada, Burberry and the Kering Group (YSL, Gucci and Balenciaga) to test the authenticity of Cosette's handbags and accessories.
"The investigation found no evidence to support allegations the designer handbags sold by Cosette are fake," a spokesperson for NSW Fair Trading said. "Each item was tested and verified as authentic by the brand. In some instances, the luxury brand confirmed the authenticity of handbags that multiple online authenticators had advised customers were fake.
"The investigation highlights that there are significant issues with the accuracy and reliability of online authenticators, who use AI and algorithms to provide authentications. Consumers should be aware of the limitations of using some online authenticators.
"NSW Fair Trading will continue to carefully assess any further complaints lodged."
Cosette shared a statement saying the “unfounded allegations” have had a detrimental impact on the luxury retailer and its customers who were wrongly led to believe that some of its products were not genuine.
“The allegations stemmed from inaccurate and misleading services provided to customers by third-party authenticators,” Cosette wrote in the statement. “In response to allegations, Cosette has successfully defended all of the cases it contested in the NSW Civil and Administrative Tribunal (NCAT).”
Cosette reported that NCAT found that these authenticators provided “no evidence of specific qualifications, skills or knowledge” in providing 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 has always been committed to the highest standards of quality and trustworthiness. We source all of our leather goods from Europe and only work with highly reputable suppliers that have a long history of trading in luxury goods.
“Our approach to authenticity is to trace each good through the supply chain to licensees that have been authorised by the brands to sell the goods. This is the best and only means of being assured of the authenticity and origin of the product.”
Cosette offers a wide range of handbags and accessories from global luxury brands including Gucci, Prada, Saint Laurent, Givenchy and Bottega Veneta, all at a lower than RRP price.
The luxury retailer added that it is able to offer these reduced prices by parallel importing directly from European retailers and suppliers, primarily from Italy.
“Some of these products may be overstock, but they are always new (never used or pre-owned), authentic and therefore of the highest quality. This direct sourcing means that we are able to share the benefit of any pricing advantage we obtain with Australian customers.”
On behalf of Cosette, spokesperson Don Grover said that in its near 10 years of operation, the luxury retailer has served more than 130,000 customers.
“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 is the best place in Australia to buy genuine luxury goods at the most affordable prices.”
According to NSW Fair Trading, carrying out authenticity testing directly with the overseas luxury brand, rather than through a third-party online authenticator, is the most accurate way to determine authenticity.
While ‘parallel’ or ‘grey’ importing is a legitimate and legal business model, it is recommended that consumers buy direct from the manufacturer if they wish to be absolutely certain of the origin of the product.
"If not buying directly from the manufacturer, consumers should do their research before purchasing a parallel import. This includes the background of the grey importer and a comparison of the price and quality of goods with the original manufacturer."