An internet auction site provides an electronic location where buyers and sellers from all over the world are able to bid for items in any country of the world. The principles of a conventional auction apply:

• The buyer determines that the goods are what they want before bidding.
• Final bids are likely to be binding.
• 'Buyer beware', as normally there are no returns or refunds.

The auction site is usually not a party to the contract and therefore may not be liable for claims made about the goods, non-delivery of the goods or damages resulting from a dispute about the goods.

Payment and delivery of the goods are negotiated between buyer and seller.

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Some auction sites also allow goods to be purchased immediately, without bidding (eg. eBay’s 'Buy it now'option). This type of sale is not an auction. The advantage of this option is that if you think the price being offered is reasonable you can obtain the goods immediately, without the uncertainty of waiting to see if you have been the successful bidder. The disadvantage is that you may pay more for the goods than if you had won the auction normally.

If goods are bought at a price set by the seller, consumer protection laws may only apply if the seller is in the business of selling goods. If the goods were purchased in this way from overseas, the buyer may be protected by the relevant laws of the country from which they were purchased.

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Statutory (or implied) warranties generally do not apply to goods purchased at auction. However, the seller is required to provide goods with clear title’, ie. free of debt, charges and mortgages, unless they are disclosed or known to you before you purchase the goods.

In addition, in most circumstances, manufacturer’s warranties may not apply to new or used goods purchased at auction.

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NSW and Commonwealth consumer protection legislation generally does not apply to goods purchased at auction, including internet auctions. However, Fair Trading may be able to look at matters where a seller, who is in the business of selling goods, has made false, misleading or deceptive representations about the goods you have purchased.

Consumer protection laws do not apply to purchases where the goods have been auctioned privately. If there is a problem with a private sale, the buyer may need 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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For further information refer to Internet shopping page.

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