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August 1, 2006
INTERNET AUCTIONS OFFER GREAT DEALS . . . AND STEALS
VANCOUVER, BC — Who hasn’t heard at least one friend brag about the great price they got through an online auction? Whether the item is new or used, unique or common, the winning bidder feels a sense of accomplishment. When the purchase arrives as advertised, both the seller and the buyer end up satisfied. Unfortunately, online auctions do not always offer a happy ending. The Better Business Bureau (BBB) would like to warn shoppers to be very careful when purchasing goods this way.
“There are some pretty sad tales,” says Sheila Charneski, president of the Better Business Bureau of Mainland BC. “Some buyers fail to receive any merchandise whatsoever; others receive an item that in no way resembles what was advertised; and there are buyers who report being misled about the terms of the sale.”
The BBB is reaching out to online shoppers this summer to emphasize how to bid safely and successfully at Internet auction sites. “If you use care and common sense, you’ll secure some great bargains by avoiding unethical sellers,” says Ms. Charneski.
To help ensure satisfactory Internet auction transactions, the BBB encourages bidders to:
- Choose legitimate auction Web sites. Carefully read directions for bidders and know up-front what types of protection (insurance, guarantees, etc.) the site offers.
- Verify the seller’s identity and check their feedback rating before placing a bid. If you can't find any information on the seller, avoid doing business with them. Don’t rely on e-mail alone; some sellers use a forged e-mail header. Get the seller’s phone number and confirm that it is in service.
- Know the terms of the transaction. Who pays for shipping and delivery? Does the item come with a warranty? What is the seller’s return policy?
- Insist on paying with an online payment service or a credit card. If you don’t receive the merchandise, you can challenge the charges with your credit card issuer.
- Read the fine print: Some online payment services offer protections to buyers if the seller fails to ship the goods or ships goods that are not as described in the auction. Buyers should read the terms under which the protections apply. Usually, if a buyer uses a credit card to pay for goods or services through an online payment service, charge back rights are available to the buyer who uses the credit card. However, if the service considers the transfer of funds to be a method of sending cash rather than paying for goods, then charge back rights may not apply. If you cannot find out what will happen if you need a refund or if you don’t understand how the payment service works from reading the website, find a different service or use another method of payment.
- If you decide to use an online payment service, know what protection you are afforded if the seller fails to ship the goods. Using a credit card to pay for goods through an online payment service will afford you “charge back” rights.
- Be cautious if the seller asks you to pay by cheque or money order as you will have little recourse if the transaction goes awry. Do not wire money. If something goes wrong with the transaction, the buyer most likely will lose their payment.
- If the purchase is a big one, you might want to use a third-party escrow service that will hold your payment until you receive and approve the merchandise. Always verify that the escrow service is a reputable company. If the seller insists you use a specific escrow service and you cannot confirm its legitimacy, back away from the deal.