When you purchase goods on the internet from overseas or another state, NSW consumer protection laws may not apply and may only offer you limited protection. 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 usses and abilities.
• Make sure you know what you are getting for your money.

Before you purchase anything over the internet it is your responsibility 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
• 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 home-based employment opportunities.
• Don’t rely only on one source of information.

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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.

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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.

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For further information refer to Internet auctions page.

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From time to time disputes will arise for such things as non-delivery of goods, misrepresentation of goods or defective goods. When a problem arises the following steps should be followed:

Step 1 - Contact the seller

• Outline the problem clearly.
• Suggest a resolution.
• Provide your contact details so that the seller can easily respond to you.
• Allow a reasonable time for the seller to respond to you.

Step 2 -  If the problem is still not resolved you may refer it to a dispute resolution process.

Most online shops have easily accessible dispute resolution mechanisms for dealing with disputes arising from sales on their sites. Buyers should check each site's process to ensure they are confident that it will be helpful in the case of a dispute.

Credit card providers can also be approached to reverse a transaction where goods purchased haven’t been delivered or were misrepresented. Online payment services usually have mechanisms for dealing with disputes relating to non-delivery of goods.

Where a credit card provider or online payments service provider doesn’t satisfactorily resolve the problem, and the transaction was based in Australia, you may contact the Financial Ombudsman Service on 1300 780 808.

A buyer may have recourse through Fair Trading when goods are not as described or when the item listed for bidding states there is a warranty and the warranty is not provided. Assistance may be available provided the dispute is not with a private seller and the transaction occurred in NSW.

For transactions between parties based in NSW, if the matter still cannot be resolved, an application may be lodged with the Consumer, Trader and Tenancy Tribunal or alternately, you may wish to seek independent legal advice.

Where goods have been purchased overseas, consumers should contact the relevant consumer body in the country where the trader is situated or lodge a complaint through www.econsumer.gov. There are consumer protection agencies operating on the internet which maintain a database of traders with a record of dubious trading activities. Some also maintain registers of traders abiding by national or international codes of practice for internet trading.

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