A new shopping swindle is luring people in on social media and deceiving them into paying top dollar for clothes that are being sold much cheaper overseas.

Lured by ads on social media from the online store Everly Melbourne, Debra believed she was buying high-quality clothes with a money-back guarantee. 

“I paid $156 for three dresses and literally they wouldn’t be worth more than $10,” Debra told 9News.

When she tried to get a refund she was told the items were “not eligible for a full refund” and if she wanted to swap sizes she would need to cover the shipping costs to their warehouse in China.

“I felt really ripped off,” she said.

“I couldn’t believe I thought I was buying from a Melbourne company and they were just being drop shipped from China. “

Drop shipping is legal unless a company is misrepresenting themselves and their product.

You buy something from an online retailer marketing themselves as an Australian business but they’re likely based overseas and they purchase the product from a supplier who then ships the items directly to you.

Another victim of the scam, Tanya said: “I paid $50 for this dress, it’s poor quality, bad stitching not worth more than $5.”

Tracy was also enticed by ads on social media from Aussie Luxe, supposedly based in Melbourne and offering big discounts and free refunds.

“Basically I had to return it to China, although they state they have a Melbourne store with an address on their website,” she said.

Many of the websites showcase exotic Australian locations like Cairns, Noosa and Byron Bay.

Although the ACCC won’t reveal which companies they’re investigating, they say consumer law is breached by retailers.

“[They are] misleading consumers about the quality of the product, the location they’re buying from and what the consumer’s refund rights are,” ACCC deputy chair Catriona Lowe said.

One of the quickest ways to tell if you’re being scammed is to do a reverse image scan on Google to find the original supplier and price.

Febra’s $70 dress is just $16 on Ali Express, and her $60 dress is selling for $14 on Temu.

Tanya’s $50 dress is only $7 on Ali Express.

“I’m really angry now because I think there’s so many people this has happened to and this is a massive scam,” Debra said.