NSW Fair Trading has launched an investigation into the online fashion retailer Isla & James following allegations of misleading conduct related to the December 14 incident at Bondi Junction. The agency issued a public warning about the company, which it has described as a "ghost store" making false claims regarding its operations and a purported association with the event, including an alleged injury to a co-founder. The website, which claimed to be closing due to the incident, has since been removed.
Investigation Initiated
NSW Fair Trading has initiated an investigation into the online retailer Isla & James. The inquiry follows allegations of "unconscionable conduct" and claims that the company sought to profit from the December 14 attack at Bondi Junction by leveraging community sympathy. The agency has issued a public warning concerning the business, categorizing it as a "ghost store" that has allegedly made false claims about its location and business operations.
Allegations and Company Claims
Isla & James reportedly advertised a permanent closure sale, stating that the reason for its cessation of business was the Bondi incident and claiming that a co-founder named 'James' had been shot during the event. The website offered discounted products, including clothing, bathers, and bags. An image identified by the website as its founders was displayed.
Investigation Findings and Discrepancies
Investigations by NSW Fair Trading and public scrutiny have identified several inconsistencies with the company's claims:
- The Isla & James website was reportedly registered on December 23, nine days after the December 14 incident, from an IP address located in Arizona, United States.
- Publicly identified fatalities from the incident do not include any individual named James. While some injured survivors have not been publicly identified, the specific claim prompted scrutiny.
- NSW Fair Trading confirmed the absence of an Australian contact number or a physical trading address, indicating no genuine association with Bondi Beach.
- The website lacks a '.au' domain extension.
- The site states that products ship from a central warehouse in Asia.
- Searches on the Australian Business Number (ABN) website did not yield any businesses registered under the name Isla & James, despite the website claiming business registration and Value Added Tax (VAT) numbers could be supplied upon request.
- Image searches of products displayed on the Isla & James site reportedly linked to other e-commerce platforms and online marketplaces such as Temu.
Commissioner Natasha Mann of NSW Fair Trading stated that the agency believes Isla & James is an overseas-operated "ghost store" attempting to exploit community grief for financial gain.
Regulatory Response and Warnings
The Isla & James website has since been removed. NSW Fair Trading had confirmed it was working to have the site taken down and plans to continue its investigation to ensure the store remains shut and to monitor for similar deceptive practices. An agency spokesperson stated that allegations of traders exploiting vulnerable community members by leveraging consumer sympathies related to the Bondi incident are taken seriously.
Acting Fair Trading Minister Jihad Dib issued a statement addressing attempts to manipulate consumers following the tragedy, indicating that such conduct, if found to be misleading or deceptive under the Australian Consumer Law, could lead to civil and criminal contraventions. The Minister stated that exploiting community grief and suffering for profit is unacceptable.
Ghost stores often employ emotional narratives related to tragedies to pressure consumers into purchases, frequently delivering low-quality goods or failing to deliver items, and operate overseas to complicate returns and refunds.
Consumer Information
One consumer, Samia Goudie, reported being misled by an advertisement from Isla & James, leading her to spend $250. Ms. Goudie later indicated that the items appeared to be from an e-commerce platform and her order was not dispatched.
NSW Fair Trading encourages consumers affected by Isla & James to lodge complaints with NSW Fair Trading or Service NSW. The consumer protection body has advised the public to remain vigilant against 'ghost stores,' fraudulent fundraising efforts, and other deceptive practices involving the sale of goods or services linked to the Bondi attack. Reports of suspicious offers related to the Bondi incident should be made to Scamwatch.