A SMITHFIELD warehouse is set to face hefty fines after it was caught supplying two retail stores in the Sydney central business district with counterfeit cosmetics.
The warehouse, along with the two other retail stores, was recently raided by Fair Trading following a tip-off that fake make-up products, including the MAC brand, were being sold.
Fair Trading Minister Matthew Mason-Cox said more than 8000 counterfeit products were seized as a result of the three raids.
"The raids follow a Fair Trading investigation into consumer complaints about products they had purchased from a Sydney retailer," he said.
"Alarmingly, one complainant reported experiencing burns to her face after using the counterfeit products.
"Others reported that it was not until the product packaging had been opened that it became obvious they had purchased a fake due to a different colour and consistency to the genuine article."
Mr Mason-Cox said Fair Trading investigators were acting on information from the cosmetic company, as well as their trademark investigators that the two stores were selling counterfeit MAC goods.
"The goods have been tested and they are proven to be counterfeit," he said.
"These products are of poor quality and their ingredients of dubious origin. The cosmetic industry is a billion dollar market and our concern is that consumers can be misled into paying top dollar for fake and inferior products."
While the investigation is ongoing, the Australian Consumer Law provides fines of up to $220,000 for individuals who engage in false and misleading conduct and $1.1 million for a body corporate.