Warning over new dropshipping scam sweeping Instagram and Facebook – how fraudsters are targeting you

A WARNING has been issued over a new dropshipping scam sweeping Instragram and Facebook.

The advertising watchdog has told shoppers to be aware of companies that promote clothes they don’t stock and instead ship cheap items from third-party sellers overseas.

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This is a practice otherwise known as dropshipping.

It comes as a so-called “British” clothing firm duped shoppers into thinking it was based within the county by using images of models styled in backdrops such as a cobbled London street.

But instead, the firm was in fact shipping goods from a warehouse in Asia.

The Advertising Standards Authority has now banned the adverts used by the fashion brand.

The firm’s website, seen in May, featured an image of a handbag set against a city street backdrop, above text that read “British Brand” alongside a Union flag icon and the text “Free UK Shipping”.

Further down the page, an image showed a woman carrying a Marble Muse handbag while crossing a cobbled street framed by townhouses and shops.

In the “Contact Us” section, the company’s address was listed as an address in London.

Another page discussed Marble Muse’s founders, including the subheading “Our Beginnings” which stated that the brand was “founded in London”.

The BBC complained to the ASA that the website misleadingly implied that the company was based in the UK, as they understood the company was based in China, and breached advertising rules by omitting the identity and geographical address of the company.

Marble Muse did not respond to the ASA’s enquiries.

The ASA said: “We considered that consumers were likely to understand from those elements of the ad, that Marble Muse was based in the UK, specifically, London, when we understood that was not the case.

“While the ad did include a geographical address on the website, we noted that this appeared to be a residential address within a housing estate, with no visible indication that it was a place of business.

“We also noted that it was stated on the website that all returns were to be sent to the advertiser’s warehouse in Asia.

“We therefore considered that the address was unlikely to be a genuine business premises from which the advertiser operated.”

It ruled that the ads must not appear again, adding: “We told Marble Muse to ensure their advertising did not misleadingly state or imply they were based in the UK and, where their ads quoted prices for advertised products, to include the geographical address from which they operated.”

The Sun contacted Marble Muse for comment.

Watchdog warning on dropshipping

Online shopping gives Brits access to endless brands, but not all of them are trustworthy, and you could end up out of pocket.

The ASA said these companies often use tactics to lure shoppers in, which include:

• False money-back guarantees or “free” returns promises
• Brand names with city references such as Milena-London or Bond Bristol, to make them look
• like trusted British brands
• Closing-down sales, often citing tragic or dramatic reasons
• Misleading claims about product materials (e.g. cashmere or wool)
• Claims that products are handmade
• Featuring AI-generated images of the supposed owner
• Claims that they are independent, long-established businesses
• Fake Trustpilot reviews on their websites

But more often than not shoppers receive substandard products and, in many instances, cannot contact the seller or get refunds.

Some businesses may also give the misleading impression they are UK-based when they are actually overseas, making it even more difficult for people to return goods or get their money back.

If you are shopping with a brand you have never heard of before a helpful tip can be to look up the firm on Companies House and see where it is registered.

The ASA said if you are in in doubt, “pause and think before making a
purchase”.

They said: “We know how frustrating and costly it can be for people who’ve ordered something to receive a substandard product – particularly when it’s almost impossible to return the product and get a refund.

“By exercising caution and reporting these ads and websites to us, we can help get the drop on these fraudsters.”