Shopping Online

If you like the convenience of shopping by mail or phone, buying goods and services over the Internet may seem appealing. However, just like shopping in the traditional retail market, you must be wary of where you shop and take steps to prevent potential problems.

With the click of the mouse, you can buy almost anything online. Make sure you do business with companies you know and trust. Almost all major retailers have Internet sites that allow you to order their products online. If you want to play it safe, stick with major, national retailers that you know. If a company is unfamiliar, check its complaint records with your local or state consumer protection agency and the Better Business Bureau. Remember that Internet companies may appear and disappear quickly, so don't judge a lack of complaints as a guarantee the business is legitimate. Here are some more ideas on deciding to do business with an online company:

• Know where the business or seller is physically located. The Internet opens doors to companies all over the world. If the seller is located in another country and you have a dispute with them, resolving problems may be more difficult. Consumer protection laws and regulations differ from country to country. Be wary of companies that don't publish their location on their web site.
• Know who you’re dealing with. Anyone can set up shop online under almost any name. Confirm the online seller’s physical address and phone number in case you have questions or problems. If you get an email or pop-up message while you’re browsing that asks for financial information, don’t reply or click on the link in the message. Legitimate companies don’t ask for this information via email.
• 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.
• Know what it will cost. Check out websites that offer price comparisons and then, compare “apples to apples.” Factor shipping and handling — along with your needs and budget — into the total cost of the order. Do not send cash under any circumstances.
• Know what it will cost. Check out websites that offer price comparisons and then, compare “apples to apples.” Factor shipping and handling — along with your needs and budget — into the total cost of the order. Do not send cash under any circumstances.
• Look for information about shipping time. Online purchases are covered by the federal Mail or Telephone Order Merchandise Rule (16 C.F.R. 435), which requires that goods or services be delivered by the promised time or, if none was stated, within 30 days. Print or save the information about shipping and other details of the transaction in case you need it later. Be wary of companies that don't publish their shipping policies. For more information about how the Mail or Telephone Order rule applies to you, see the U.S. Federal Trade Commission article Shopping by Phone or Mail.
• Check the cancellation and return policy. It is generally the seller's decision whether to allow cancellations, returns or refunds. Be sure to check and make sure their policy agrees with any possible scenario you may encounter.
• 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.
• Don’t email your financial information. Email is not a secure method of transmitting financial information like your credit card, checking account, or Social Security number. If you initiate a transaction and want to provide your financial information through an organization’s website, look for indicators that the site is secure, like a lock icon on the browser’s status bar or a URL for a website that begins “https:” (the “s” stands for “secure”). Unfortunately, no indicator is foolproof; some fraudulent sites have forged security icons.
• Check the privacy policy. It should let you know what personal information the website operators are collecting, why, and how they’re going to use the information. If you can’t find a privacy policy — or if you can’t understand it, consider taking your business to another site that’s more consumer-friendly.
• Find out about warranties, guarantees, and service. Especially if you're buying an appliance or electronics, it's important to know if it's guaranteed and if service is available locally.
• Know the difference between private sales and sales by a business. Many individuals offer to sell items through online auctions, chat rooms, and online classified ads. These purchases are not covered by the federal Mail or Telephone Order Merchandise Rule or by many other consumer protection laws. Sales by individuals also carry the risk of payment without delivery. Stick with well-known auction sites and be sure to check the seller's credentials before sending money. Read the OnGuardOnline article Internet Auctions for more information about buying and selling online.
• Be careful when sending financial or personal information online. See the ConsumerPrivacyGuide.org articleTop Things You Can Do To Protect Your Privacy. Ensure the site is using a secured server for the data. Look for a security seal. You can ask the company for this information or ask your Internet browser's manufacturer for tips to see if the site is secure. Often this information is noted in the web page address.

However you plan to shop, keep the above tips in mind. You can shop online safely if you do your homework first. For more suggestions about avoiding online fraud, visit OnGuardOnline.gov.