Hundreds of customers have put in complaints to NSW Fair Trading amid allegations some of the handbags sold by Australian luxury boutique Cosette are fakes.
But Cosette still denies it ripped off any customers, claiming all goods sold are genuine.
So who is behind the company at the centre of the scandal?
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Pierre-Axel Paoli is a co-founder of My Fashion Republic Group, also known as Cosette.
Paoli is a French businessman who lives in Sydney’s Vaucluse, one of the most expensive suburbs in Australia.
His wife Felicie runs an interior design studio, which was recently commissioned to do a bougie renovation of Cosette’s head office and flagship boutique.
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Paoli is no stranger to couture controversies.
He was a director of high-end fashion site MyNetSale, which launched in 2011.
It had a similar concept to Cosette, offering high-end luxury labels at discounted prices.
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But in 2014, British label Burberry sued MyNetSale, accusing the company of passing off its luxury clothes on the website. The case was settled.
MyNetSale eventually went bust but not before amassing 700,000 customers, as well as debts of nearly $12 million.
But Paoli, being the businessman that he is, adapted and launched My Fashion Republic.
In 2019, the group behind Cosette also acquired Luxify, which promotes itself as Asia’s leading online marketplace for luxury.
But behind the scenes, it seems Cosette’s been busy with other disputes.
Since 2017, there have been at least five cases in the NSW Civil and Administrative Tribunal (NCAT) involving the company, including one where the tribunal agreed a Celine bag wasn’t genuine.
In 2018, a Dubai supplier claimed Cosette owed it more than $200,000 for goods and asked for them back, but the supplier alleges it received fakes in return and never got the money back.
An online user claiming to be from Cosette posted a letter from the Australian Border Force in response to backlash in a bid to prove the company is legitimate because its shop is duty-free.
They said: “This means that our entire stock enters Australia under the surveillance of the Australian Border Forces who guarantees its sources.”
But the ABF confirmed to us that is not true.
Sources allege customs officers have seized Cosette’s latest import amid concerns it may contain goods infringing trademarks and that the Border Force is investigating.
In light of our joint investigation with The Age and the Sydney Morning Herald, NSW Fair Trading said it has received 373 complaints involving purchases valued at $778,969.
Businesses that partnered with Cosette to offer customers rewards, including Qantas and Zip Pay, have since confirmed they have halted working with the luxury shop while allegations are investigated.
Countless influencers have spruiked Cosette over the years, believing the products were authentic, but some seem to have now deleted posts.
PR guru Roxy Jacenko was one of them.
She was even featured in a promotional video for Cosette next to Paoli at an event at the luxury shop in 2019.
Melbourne woman Mel was another influencer who regularly promoted Cosette’s goods and addressed customers’ concerns on social media in 2020.
“According to their website and according to their marketing manager, they guarantee authenticity; they have a seven-day money-back guarantee,” Mel said.
“Obviously Cosette has violated something. You know, they’re not Entrupy verified, direct partners now.”
More and more alleged victims are having to do their own research, like Fleur, who after learning her Cosette bag was found to be fake, took it to her local YSL store to see the difference.
“The other big difference was the colour of the hardware, in particular the zip. The real one had sort of a more antique gold finish, whereas the Cosette bag was a lot brighter,” Fleur said.
Cosette’s Google reviews dropped to 3.7 stars following the allegations being reported and dozens of reviews have disappeared.
“After recent media … sent my bag off to be authenticated. It has been confirmed as a counterfeit,” one review, which was screenshotted by ACA before it disappeared, read.
“I want a refund but they won’t return my call. Furious!
“After watching ACA last night on television, I got my bag checked today. It turns out it’s a fake. I spent $1900 on it back in 2016. These people have been selling fakes for nearly seven years. I’m devastated.
“They sent me a fake ‘authentication certificate’ … when you scan the QR code now it has disappeared.”
Paoli didn’t respond to our request for an interview but in a statement, Cosette said: “All products sold by Cosette are genuine and subject to quality control and third-party authentication.
“If Cosette was not satisfied with the genuineness of any product, it would not be sold to customers.
“Cosette sources all handbags from reputable resellers, retailers, brokers and licensees in Europe.
“Cosette is cooperating with NSW Fair Trading to address any concerns that there may be by consumers and in the media.”
Only time will tell if Cosette can survive the counterfeit conundrum, and whether it has any answers for its unhappy customers
