With the holiday season in full swing, many consumers will find themselves shopping online. Stay safe with these suggestions from the Federal Trade Commission:
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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. And if you get an email or pop-up message that asks for your financial information while you’re browsing, don't reply or follow the link. Legitimate companies don't ask for information that way.
Know 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 bargain basement 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 into the total cost of your purchase. Do not send cash or money transfers under any circumstances.
Check out the terms of the deal, like refund policies and delivery dates.
Can you return the item for a full refund if you're not satisfied? If you return it, who pays the shipping costs or restocking fees, and when you will get your order? A Federal Trade Commission (FTC) rule requires sellers to ship items as promised or within 30 days after the order date if no specific date is promised. Many sites offer tracking options, so you can see exactly where your purchase is and estimate when you’ll get it.
Pay by credit card.
If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you can dispute charges under certain circumstances and temporarily withhold payment while the creditor investigates them. In the event that someone uses your credit card without your permission, your liability generally is limited to the first $50 in charges. Some companies guarantee that you won’t be held responsible for any unauthorized charges made to your card online; some cards provide additional warranty, return, and purchase protection benefits.
Print or save records of your online transactions, including the product description and price, the online receipt, and the emails you send and receive from the seller. Read your credit card statements as you receive them; be on the lookout for charges that you don’t recognize.
Protect your information.
Don't email any financial information.
Email is not a secure method of transmitting financial information like your credit card, checking account, or Social Security number. If you begin a transaction and need to give your financial information through an organization's website, look for indicators that the site is secure, like a URL that begins https (the "s" stands for secure). Unfortunately, no indicator is foolproof; some fraudulent sites have forged security icons.
How to report online shopping fraud.
If you have problems during a transaction, try to work them out directly with the seller, buyer, or site operator. If that doesn't work, file a complaint with:
- The Federal Trade Commission at www.ftc.gov/complaint
- Your state Attorney General, using contact information at naag.org
- Your county or state consumer protection agency. Check the blue pages of the phone book under county and state government, or visit consumeraction.gov and look under "Where to File a Complaint."
- The Better Business Bureau