Fair Trading Deputy Commissioner Steve Griffin is warning consumers to proceed with caution when shopping online.

Mr Griffin said NSW Fair Trading received 3,620 complaints about online trading in 2010, including 156 complaints about online auctions.

“This compares to 3,396 complaints about online trading in 2009, including 230 complaints about online auctions,” he said.

“Australians are increasingly buying and selling goods on the internet.

“Shopping online is easy and convenient, but there are risks.

“More than half the complaints received by Fair Trading related to non or partial delivery of goods, faults or damages, or products not matching their descriptions.

“Nearly 22 per cent of complaints related directly to refunds, overcharging and other money issues.”

Mr Griffin said when people buy goods on the internet from overseas, NSW consumer protection laws may not apply or may only offer limited protection.

He said the following tips would help:

When shopping online:

• Be wary of offers that appear ‘too good to be true’
• Know who you are dealing with.
• Shop around in order to compare prices and uses and abilities.
• Make sure you know what you are getting for your money.

Before you purchase anything over the internet it is advisable to:

• obtain the seller’s contact name, address and phone number
• phone or email the seller directly with any questions
• check their refund, warranty and return policies
• check any ‘feedback’ that has been made about the seller, to get an idea of the seller’s reputation and reliability: use search engines
• check the freight or delivery methods and costs
• check currency exchange rates and whether sales tax or import duties apply
• make sure it is legal to import the goods being bought, if from overseas
• check if the site is secure before paying by credit card
• print a copy of your order before you send it
• check ScamWatch at www.scamwatch.gov.au and the National Fraud Information Centre (USA) www.fraud.org for the latest scams to avoid
• monitor children's access to shopping sites, as some companies market directly to
  children.

Avoid making bad decisions.

• Don’t deal with sellers who are evasive, only have a mobile phone number and won’t give a contact name or address.
• Don’t participate in illegal pyramid selling schemes – sometimes these are promoted
  under the guise of network marketing, chain letters, get rich quick schemes and homebased employment opportunities.
• Don’t rely only on one source of information.
  

Security

You may be asked to provide personal details including bank account and credit card numbers or to create passwords for personal access to an online shop or auction site. You should:

• Never give out personal details such as bank or credit card account numbers, unless you are sure you know who you are dealing with.
• Ensure that the website is secure. Look for a padlock icon at the bottom of the web browser. If the padlock is closed then the site is secure. If the url begins with https://, instead of http://, the ‘s’ indicates the site is secure.
• Try using a combination of numbers letters and symbols rather than dates such as
  postcodes and birth dates when creating a password.
• Never give out passwords.

Methods of payment

When goods are bought online there may be various methods of payment, including:

• credit card
• Bpay
• secure payment sites eg PayPal
• direct deposit into a bank account
• rechargeable debit card, personal cheque, bank cheque or Australia Post money order
• Escrow, where a third party holds the goods and forwards them to the buyer when they receive payment for the seller.
• Paying for goods by credit card may offer you some protection if there is a problem such as non-supply of the product. The buyer may be able to contact their credit card provider and request a charge back on the credit card.
• Services like PayPal offer buyers and sellers an online facility for the payment of their transactions. If customers are experiencing problems such as a non-delivery of goods, they may be able to contact the service to seek a refund.

“If you need help, call Fair Trading on 13 32 20,” Mr Griffin said.

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