By MAE ANDERSON
Updated at 6:25 AM PST on January 15, 2026
Melia & Co is presented as a small family-run business, showcasing sweaters on its website with an image of a woman crafting a Christmas knit. The accompanying text reveals that after decades of creating knitwear that embodies “quiet stories of care and beauty,” she is shutting her studio, making these pieces her final offerings.
Meanwhile, Olivia Westwood Boutique also boasts an appealing backstory. Their “About Us” section notes that twin sisters have taken up the mantle of their mother’s shop, established in 1972, and are committed to a business ethos that prioritizes family, community, and empowering women. Customers could enjoy a sale commemorating their late founder on what would have been her 95th birthday.
However, both stores may not be as they seem. They both offer a similar range of Icelandic, Nordic, and festive sweaters, featuring identical stock images. Their website domains were registered in China in November, just before the holiday shopping rush. Consumer review platforms like Trustpilot are rife with negative feedback, with users reporting poor-quality goods and difficulties in obtaining refunds.
Melia & Co. did not respond to inquiries for more details about the ownership. A deeper look into a pop-up ad for Nola Rene, the 72-year-old Swedish knitter allegedly retiring, reveals an “advertorial” label and a disclaimer indicating that the individuals in the images are models. At least three additional shopping websites also market “lovingly hand-knitted” sweaters.
In contrast, Olivia Westwood Boutique replied to an inquiry regarding its location and ownership by claiming to be an online boutique collaborating with “trusted global fulfillment partners” to serve its customers.
Online shopping scams have become prevalent. A Pew Research Center survey from April 2025, published in July, found that about 36% of Americans were unable to get refunds after purchasing items online that either never arrived or were counterfeit. The rise of faster and more advanced digital tools has made it increasingly challenging for consumers to discern genuine offers from scams.
Some fraudsters exploit AI-generated images to craft websites that appear to exude artisan credibility or boast a lengthy history as trusted small retailers, according to Seth Ketron, a marketing professor at The University of St. Thomas in St. Paul, Minnesota.
“It’s increasingly common,” Ketron noted. “If you’re not attentive or unaware of what to look for—especially regarding AI images—it’s easy to overlook that something may not be legitimate.”
Misleading e-commerce advertisements often surface on social media or as banners on various websites. Experts recommend a few straightforward strategies shoppers can adopt to differentiate trustworthy small merchants from potentially fraudulent ones before hitting “buy.”
Verify key details
Deanna Newman, owner of C’est La Vie, an online jewelry retailer in Ontario, Canada, recounts her experience with a mall-business impersonation scam. A customer left a complaint about receiving subpar goods, leading Newman to investigate and discover that several fraudulent websites were using her store’s name to sell jewelry, some claiming to operate from non-existent brick-and-mortar locations worldwide.
“Some customers received low-quality jewelry from China, while others got nothing at all,” she explained.
Newman addressed the complaints and warned her customers about misleading C’est La Vie websites through her social media and online store but still faced a backlash of poor reviews affecting her sales.
She advises shoppers to seek verifiable details like a legitimate address, and to contact the owner directly if unsure. A genuine business should be willing to respond.
“It’s challenging since consumers must do some research, but remember, if something seems too good to be true, it likely is,” Newman cautioned.
Avoid sob stories
Scammers often use fabricated hardship narratives to entice buyers. Ploys could include fake “going-out-of-business” sales or campaigns honoring a deceased relative.
Newman discovered that those using her company’s name employed various sob stories, one customer expressing sympathy for what they thought was her son’s passing.
“I realized they believed I was the scam website. The good news was that I was sending products, but the bad news was they thought they were supporting someone in distress,” she recalled.
Check third-party reviews
Murat Kantarcioglu, a computer science professor at Virginia Tech, urges consumers to examine reviews prior to purchasing from smaller businesses. Although customer reviews can also be fake, they offer valuable insight during your research.
Platforms like the Better Business Bureau and U.K.-based Trustpilot are good starting points, along with established marketplaces like Amazon and Etsy if the brand is listed there.
“If a small business claims a 30-year history, there should be reviews dating back at least a few years,” Kantarcioglu stated.
Research the domain
A quick check involves finding out where a website is registered. Kantarcioglu recommends using the nonprofit Internet Corporation for Assigned Names and Numbers for a domain name search, with GoDaddy and Whois as other alternatives.
A business claiming to operate in one country but registered elsewhere is a red flag. New domain registrations for sites marketed as established small businesses should also raise suspicion.
Trust your instincts
Despite vigilance, there’s still a chance of falling victim to scams. If something feels off, it’s safer to delay purchasing than to regret it later, experts advise.
“As AI technology improves, scammers and those utilizing dubious business practices will find it easier to deceive consumers, as offerings will increasingly seem convincing,” Ketron warns. “With every new trick that emerges, those engaging in these practices adapt, making detection increasingly challenging.”
MAE ANDERSON
Anderson reports for The Associated Press on various issues affecting small businesses from New York.
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