Spurious web sites

Anyone can set up a web site and purport to sell goods and services online. A spurious seller can set up a web site in practically any name, lure payment for non existent goods and services from unsuspecting consumers, and vanish without a trace. Some fraudulent sellers offer services on web sites that have names very similar to well known authentic firms.

Delivered product does not meet expectations

This is a potential problem even when buying from sellers who have no intent of committing fraud or misrepresentation. Online shopping suffers from the obvious disadvantage of consumers being able to get only a general idea of the look and feel of the product they buy. It is hence not uncommon to find that the product that is delivered is different from what you thought you were ordering.

On a related note, details of when the product or service will be delivered and how it will be shipped / delivered, if not clearly spelled out and understood, may result in a mismatch of expectations for the consumer.

Product / Service cost higher than expected

Online shoppers at times find surprises in terms of additional costs than what they thought they were signing up for. In addition to shipping and handling there may be other hidden costs, administrative fees, and miscellaneous transaction costs which may be specified in fine print in a remote part of the web site. The consumer may find out about these charges only when they view their credit card or bank statements.

Identity Theft

Online shopping is one of the major avenues for identity thieves to find victims to perpetrate their fraud. Information provided by customers in an online transaction can be used in many ways that the customer never intended. Refer to the CyberAngels Guide to Identity Theft for more information about this crime.

Know who you are dealing with

Make sure that you are dealing with an authentic seller. If you're not familiar with the name and reputation of a company, find out more before you buy. With a click you can check a company's reputation by contacting the Better Business Bureau at bbbonline.org . (There are currently 37,450 web sites covered by the BBBOnLine reliability seal). Confirm the online seller's physical address and phone number in case you have questions or problems. Contact the seller promptly if you have any problems with your order.  

Know exactly what you're buying

Read the seller's description of the product closely, especially the fine print. Words like "refurbished," "vintage," or "close-out" may indicate that the product is in less-than-mint condition, while name-brand items with "too good to be true" prices could be counterfeits. Look for caveats and conditions. Find out what about competing products and services. If a seller offers an airline ticket for holiday travel from San Francisco to London for $50 while most airlines charge in excess of $500, look for the fine print -  it may be valid for travel only 2 years from now, or it may bind you into buying a vacation package for $1000.

Check out the terms of the deal, like refund policies and delivery dates. Can you return the item for a full refund if you're not satisfied? If you return it, find out who pays the shipping costs or restocking fees, and when you will receive your order. A Federal Trade Commission (FTC) rule requires sellers to ship items as promised or within 30 days after the order date if no specific date is promised.

Clearly understand the terms of purchase

Check out the terms of the deal, like refund policies and delivery dates. Can you return the item for a full refund if you're not satisfied? If you return it, find out who pays the shipping costs or restocking fees, and when you will receive your order. A Federal Trade Commission (FTC) rule requires sellers to ship items as promised or within 30 days after the order date if no specific date is promised.

Make sure you clearly understand the total cost of the purchase, including shipping, handling and any other fees. Confirm that there are no other deferred costs.

Pay by credit or charge card

If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating them. In the event of unauthorized use of your credit or charge card, you generally would be held liable only for the first $50 in charges. Some companies offer an online shopping guarantee that ensures you will not be held responsible for any unauthorized charges made online, and some cards may provide additional warranty, return, and/or purchase protection benefits.

Such protections are somewhat limited when payments are made by check or electronic funds transfer. Never pay with cash.

Keep a paper trail

Print and save records of your online transactions, including the product description and price, the online receipt, and copies of every email you send or receive from the seller. Read your credit card statements as you receive them and be on the lookout for unauthorized charges. 

Federal Trade Commission: http://www.ftc.gov/ or 202-FTC-HELP (382-4357)

National Fraud Information Center at http://www.fraud.org/ or 1-800-876-7060

Better Business Bureau online at http://www.bbbonline.com/

econsumer.gov A joint project of consumer protection agencies from 21 nations