Online Shopping Risks You Can Avoid

May 18th, 2010

Shopping online can be fun and convenient. Who would want to leave the comforts of their home to shop when you can browse countless sites in search of that special something they’re looking for?

However, there are hidden dangers with shopping online that can be avoided if you are aware.

Sometimes shopping online can be akin to taking your personal information and handing it over to a random stranger on the street in hopes that they won’t do something sinister with it. Most people would not hand their vital and confidential credit card information to a perfect stranger and you should not do it when you are shopping online.

Check Them Out

There are precautionary steps that you can take when shopping to increase your online security. Shopping online does have its risks but they can be mitigated if you do your homework. You can do the following to help to lessen those risks.

• Search on the Internet under the name of the company and ‘complaints’ and see if there is anything that surfaces.
• Check the website www.asic.gov.au which is the Australian Securities and Investments Commission to see if there have been any complaints reported for the company.
• Check for a business address, telephone number and a valid Australian Business Number before deciding to make a purchase with the company.
• Verify that their online payment system is secure and safe.
• Check out the online store’s privacy policy and procedures.
• Trust your gut. If you have suspicions about the site then do not move forward with the purchase.

Protected in Australia

The Australian Competition and Consumer Commission, also known as ACCC, promises that if you purchases goods from an Australian-based company online then your rights as a consumer are exactly the same as if you had walked right into the store and purchased directly there. You may not be afforded the same protections with companies not based in Australia. AAAC suggests that you keep all records of the transaction including forms and any e-mail correspondence from the company. This will assist in helping you prove the terms of the contract.

When making purchases with companies outside of Australia, you will have to contact the consumer affairs organisations of that particular country for assistance.

Better Safe Than Sorry

When shopping online, to increase your online security you should use a card that has a low credit limit. In the unfortunate event that something goes wrong you are not on the hook for a large sum.

Online shopping does not have to be avoided as long as you are smart about your purchases and do your due diligence.

Different rules in Australia and abroad

The Australian Competition and Consumer Commission (ACCC) have confirmed that if you buy goods online from an Australian-based trader, your consumer rights are the same as if you made the purchase in a traditional shop.

The ACCC also suggests that you keep all records of your online transaction including any forms that you complete and any e-mails that you are sent. This will help you prove the terms of the contract you entered into in the case of any problems with the online retailer.

Consumer laws differ significantly from one country to another. If you are buying from a website in another country, Choice advises that you may have to contact the consumer affairs organisation in that country.

Use a separate credit card

One way that you can help protect yourself when you shop online is to use a specific credit card with a very low credit limit. In the event that your card details are stolen and used fraudulently, the fact that you use a credit card with a lower balance limits the unauthorised, fraudulent spending that can take place on your card.

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