Advertising regulator banned fraudsters from posing as a British brand: how to spot scammers.

According to The Sun: Authorities warned about a new dropshipping scam that has intensified through Instagram and Facebook.

The advertising regulator urges consumers to be cautious of companies selling clothing without having it in stock, instead sending cheap items from third parties overseas.

This practice is known as dropshipping.

Recently, a company that positioned itself as 'British' cleverly misled consumers using photographs of models against the streets of London. But in reality, the goods were shipped from a warehouse in Asia.

The Advertising Standards Authority (ASA) banned the promotional materials used by this fashion brand.

The company’s website featured an image of a bag against an urban street with the words "British brand" and an icon of the British flag marked "Free delivery within the UK."

Further down the page, there was a woman carrying a Marble Muse bag, crossing a cobbled street surrounded by townhouses.

In the 'Contact' section, a London address was provided.

Another page touched on the founders of Marble Muse, including a subtitle "Our Ventures" that claimed the brand "was founded in London."

The BBC contacted the ASA with a complaint, indicating that the site was misleading, implying that the company was based in the UK while this was not the case, and violated advertising rules by not revealing the company’s identity and geographical address.

Marble Muse did not respond to ASA's inquiries.

“We believe consumers could mistakenly think that Marble Muse is based in the UK, particularly in London, when that is not the case,” the ASA reported.

“While the website listed a geographical address, we noted that it appeared to be a residential address within a residential complex, with no signs indicating it was a business location.”

The ASA also emphasized that all returns must be sent to the advertiser's warehouse in Asia.

“We believe the address is unlikely to be a genuine business premises from which the advertiser operates,” they added.

The ASA determined that the advertisements should not reappear, advising Marble Muse not to mislead about British origin and to provide a real geographical address for pricing information.

Regulator's warning about dropshipping

Online shopping opens up a world of brands for Brits, but not all of them are trustworthy, and you may encounter issues.

The ASA stressed that these companies often employ various tactics to attract buyers, including:

• Fake money-back guarantees or promises of "free" returns
• Brand names referencing cities like Milena-London or Bond Bristol to appear legitimate
• Sales with tragic or dramatic backstories
• Deceptive claims about product materials (e.g., cashmere or wool)
• Claims that products are handmade
• Use of AI-generated images, allegedly of the company’s owners
• Claims that they are independent, long-established businesses
• Fake Trustpilot reviews on their sites

But very often consumers receive subpar products and cannot reach the seller or get their money back.

Some companies create a misleading impression that they are based in the UK, when in fact they are not, complicating returns or getting one's money back.

If you're planning to buy from a new brand, check it on Companies House to find out where it is registered.

“If in doubt, pause and think before making a purchase,” ASA representatives emphasized.

“We know how frustrating and costly it can be for people who ordered something and received a substandard product – especially when returning the item and getting money back is nearly impossible.”

“Exercise caution and report ads and websites to us so we can help stop fraudsters.”

This situation with dropshipping illustrates how crucial it is to be vigilant when shopping online. Regulators continue to work to protect consumers, but consumer awareness also plays a key role in preventing fraud. As online commerce remains popular, it is always important to verify information about companies and their products before purchasing.