Consumer Behavior

Luxury Brand Returns Fraud and the 'Unsuspecting Consumer': Exploring the Spillover Effects of Fraudulent Returns for Consumers and Retailers

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Abstract

The rapid expansion of digital technology and internet access has transformed consumer behavior by accelerating e-commerce growth. While this growth offers advantages for retailers, it has also contributed to an increase in fraudulent returns, particularly in the luxury marketplace. To address this issue, this study explored how unsuspecting consumers experience returns fraud in online luxury retail and resale contexts. Drawing on 37 consumer-generated TikTok narratives, data were analyzed through Expectancy Disconfirmation Theory to examine how post-purchase expectations were formed, evaluated, and violated. Three themes emerged: Authenticity Anxiety, I Know a Fake When I Touch One, and Refund Runaround. These themes reflect novel forms of expert, sensory, and procedural disconfirmation. Findings reveal that dissatisfaction extends beyond product quality to include distrust in authentication processes and retailer accountability. The results demonstrate spillover effects that undermine consumer confidence and highlight the need for stronger fraud prevention, authentication, and recovery practices in luxury retail. 

Keywords: returns fraud, luxury retail, unsuspecting consumers, counterfeit goods, expectancy disconfirmation theory

How to Cite:

Murphy, C. & Hodges, N. J., (2025) “Luxury Brand Returns Fraud and the 'Unsuspecting Consumer': Exploring the Spillover Effects of Fraudulent Returns for Consumers and Retailers”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21835