Foreign Firms Use AI to Impersonate UK Businesses, Deceiving Shoppers

Unscrupulous foreign firms are utilising artificial intelligence to create fake UK businesses, luring shoppers with AI-generated images and fabricated backstories. Customers report feeling "completely ripped off" after purchasing from what they believed were independent boutiques, only to receive cheap clothes and jewellery mass-shipped from East Asian warehouses.

Credit: C'est La Vie

Consumer guide Which? stated that the increasing use of AI tools enables fraudsters to mislead the public on an "unprecedented" scale. More than 500 one-star reviews for these companies appear on Trustpilot, with customers complaining about high prices for cheaply made items and exorbitant return fees. Shoppers described being targeted by advertisements while scrolling on Facebook.

One such website, C'est La Vie, claimed to be a 29-year-old business run by Eileen and Patrick in Birmingham’s historic Jewellery Quarter. The company listed a returns address in China, despite its purported UK base. Recent advertisements for C'est La Vie alleged Patrick, Eileen’s "beloved husband", had died, prompting an 80%-off clearance sale.

Credit: C'est La Vie

Customers, drawn in by this narrative, later posted furious reviews on Trustpilot, reporting that they received "lumps of resin", "plastic junk", and "cheap metal rubbish". Sunny Pal, who operates Astella Jewellery in Birmingham, noted these scams damage the Jewellery Quarter’s reputation and undermine local businesses. Within hours of media inquiries, the C'est La Vie website stated all products were sold out, temporarily changed its name to "Alice and Fred", then reverted.

Another site, Mabel & Daisy, appeared to use AI-generated images and claimed to be a mother-daughter owned clothing firm based in Bristol. However, its address was in Hong Kong. Justyne Gough spent £40 on a pink floral dress from Mabel & Daisy, only to discover it was a "complete scam" due to the garment’s poor quality.

Credit: C'est La Vie

Ms. Gough was informed a return would cost £20 and eventually received a £20 refund. Emma, from Birmingham, attempted to return a £50 jacket to Mabel & Daisy that was too large. She realised the business was not Bristol-based when Chinese symbols appeared during her transaction.

Professor Mark Lee, an artificial intelligence expert at the University of Birmingham, observed that the images on these websites looked "a little bit too perfect and staged to be real". Lee explained that while AI previously struggled with realistic details like hands, it is now becoming highly sophisticated. He warned that soon it may be difficult to discern if a real human is involved in online businesses.

The Advertising Standards Agency (ASA) recently banned advertisements for Marble Muse, a Chinese clothing company that falsely presented itself as London-based. The ASA also prohibited ads from another "British" clothing firm that used images of roses and the Union Jack while shipping goods from an Asian warehouse. A spokesperson from the regulator reiterated that other regulators and platforms share responsibility in addressing this issue.

Sue Davies, from Which?, highlighted that trading standards teams are "severely under-resourced" and "not well-equipped" to handle these fraudulent websites, leading to many going uninvestigated. She advised shoppers to check online reviews and company terms and conditions to confirm a business’s UK base. Lee recommended looking for images of people in different real settings with identifiable locations as a protective measure.

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• Foreign firms are using AI-generated images and false backstories to impersonate family-run UK businesses.

• Customers have reported receiving cheap, low-quality goods from East Asia after believing they purchased from independent UK boutiques.

• Examples include C'est La Vie, claiming a Birmingham base with a China return address, and Mabel & Daisy, alleging a Bristol base with a Hong Kong address.

Source: BBC