Fyshwick-based online wedding and party supplies business Pink Frosting has fallen foul of some customers, with Access Canberra confirming that the company, owned by former ACT business owner of the year Louise Curtis, is under active investigation.
A vitriolic social media campaign with 143 supporters has been waged against the business and Ms Curtis, with customers alleging orders have been taken and payments made, but no goods received.
The Facebook page was created six years ago.
Pink Frosting declared on its website that it was closing its retail operation on July 1 and its phone now goes to an answer service.
However, online reviewers state that it was still taking orders in mid-July.
The Canberra Times visited the premises on several occasions and found it closed, but Ms Curtis said on Friday the business remained open.
Of the 131 online reviews of Pink Frosting, 92 reviewers gave the business a one-star rating and most were disparaging of the customer service provided.
Of the 1200 reviews of the company on productreview.com.au, 959 were one star.
Access Canberra would not provide details of its fair trading investigation and was unable to provide any further comment "at this time".
The Australian Competition and Consumer Commission also said it would not comment.
"An update and information will be provided in the near future," the Access Canberra statement said.
"Consumers who are experiencing problems dealing with Pink Frosting can contact 13 22 81."
The Townsville Street premises of Pink Frosting, although not open for trading when visited during the week, appeared fully stocked with retail goods when The Canberra Times attempted to contact the business owner.
Its adjoining store area received pallets of recent deliveries.
Ms Curtis is also a co-owner of another Fyshwick business, Lollypotz in nearby Maryborough Street.
When approached for comment, Ms Curtis would not be drawn into the details of the matter.
Instead she stated that "the court case is still ongoing and the reports you have received [about the closure of Pink Frosting] were premature, hence my reluctance to make comment."
"The [Fyshwick] premises are not our current premises, we had to relocate due to the inability to operate - this is a historical matter which has been ongoing for a number of years and has adversely affected many lives of staff and shareholders of the company," she added.
"At this stage I do not intend to make any further comment until such time as the proceedings are complete."
Court documents relating to a rental dispute between Ms Curtis and her landlord at another Fyshwick premises at 72 Gladstone Street revealed that Ms Curtis complained about a number of building issues. This included plumbing, roofing and internet disruption issues for which she sought financial compensation.