|
FACTSHEET and Frequently Asked
Questions (FAQs)
Subject:
Internet Auctions
Internet auction sites are becoming more and more popular,
with many consumers and traders using them as a means to advertise and
sell their products. Internet auction sites can offer consumers
increased choice and flexibility but consumers need to use the same
caution as they would when buying from someone they don’t know.
Recent Campaigns or Consultation
The Government issued guidance in December 2003 advising
consumers how to guard against the risks associated with Internet
auction sites. Details are available from Consumer Direct Online at:
www.consumerdirect.gov.uk/your-rights/fs_c06.shtml
In 2004 the Office of Fair Trading published Tips for Safe
Trading when buying from private sellers. Information is available from:
www.oft.gov.uk/Consumer/Your+Rights+When+Shopping+From+Home/Internet+auctions/default.htm
The Home Office website provides information about internet
crime, potential scams and how not be a victim of fraud. Their website
address is:
http://www.homeoffice.gov.uk/crime/fraud/index.html
Key Facts
• Buying on internet
auction sites is similar to buying goods from classified adverts in
newspapers.
• Consumers have
fewer rights when they buy privately so it is important that they take
precautions about what they purchase and from whom.
• Remember you may
not be dealing with someone in the UK.
• Consider where the
person you are buying from is located, for instance they may be based
abroad. If things go wrong would it be difficult to trace the person and
get redress?
• Be wary about
fraudsters posing as potential sellers/buyers.
• If in doubt, about
your rights seek advice from your local Trading Standards or Citizens
Advice.
• Never pass on
details of your bank account and be careful about other personal
information.
• If it look’s too
good to be true, it probably is.
Frequently Asked Questions (FAQs)
Q1. What are internet
auctions?
Q2.
What are
my rights?
Q3. Can
I get a refund if I change my mind?
Q4. What
should I look out for if I want to buy from an internet auction?
Q5. What can I do if things go wrong?
Q6. What is the Government doing to stop fraud on the internet?
Q7. What is an escrow service?
Q8. I have been advised not to trade outside of the internet
auction site. Why?
Q9. The buyer has over paid me and asked me to send him the balance.
Should I be wary?
 Q1. What are internet auctions?
Internet auction is the term commonly used to describe any kind of
website that allows people to sell a wide range of goods in a number of
ways including through competitive bidding.
Q2. What
are my rights?
Many people who advertise their goods for sale on internet auction sites
are private sellers, similar to those placing a classified ad in a
newspaper. In private sales your rights are different. The goods must
be as described but they do not have to be of satisfactory quality.
Q3. Can
I get a refund if I change my mind?
You may not be able to cancel after you have agreed to buy the goods,
Before you buy find out whether the seller offers cancellation rights or
a refund.
Q4. What should I look out for if I want to buy from an
internet auction?
Check the seller’s reputation.
Most auction sites post feedback ratings of sellers based on comments
by other buyers. Ask questions before you bid e.g. what is the
returns policy? A good seller will always welcome enquiries.
Do your
homework.
Check the description, type of model and retail price of the goods.
Be wary: if the price looks too good to be true, it usually is. If
it’s a collectable item take steps to confirm it is authentic.
Before you bid,
find out what form of payment the seller will accept. If it’s only cheques or money orders, decide whether you
are willing to take the risk of sending your payment before you
receive the product. Beware of sellers who try to make you send money
through Instant Money Transfer systems such as Western Union. These
systems are designed for transfers of money to family and friends -
people you know and trust. If possible, you should use a credit card
(check your details are protected) if you are buying from a trader
because it offers the most protection if there’s a problem. If the
seller doesn’t accept credit cards, buyers should consider using an
escrow service, which holds your money until the goods are delivered.
Before you submit a price think carefully.
Know how much you are willing to pay, stick to it, and think whether
you are getting value for money. Once a price is accepted you will be
expected to pay.
Read the small
print. Is
postage included in the price? How will the goods be posted? Do you
need extra insurance? Is the seller based in the UK? If not what
action can you take if things go wrong?
Q5.
What can I do if things go wrong?
If you have a problem, it could be harder to get your money back. If
you can’t resolve the matter with the seller, check to see if the
auction site has dispute resolution procedures that may be able to help.
Your local Citizens Advice Bureau may also provide advice on whether
there is any course of redress, for example through the small claims
court. General information about their services and whom to contact is
available from the CAB website at
www.adviceguide.org.uk
If you have bought
something from a trader and paid by credit card you may be able to
recover the cost from the card issuer. This will only apply to
purchases bought in the UK and which cost over £100.
Q6. What
is the Government doing to stop fraud on the internet?
Government Departments continue to work with industry organisations and
law enforcement agencies through a variety of discussion groups such as
the Internet Crime Forum, which meets quarterly, to discuss how internet
crime can be tackled and how public confidence in use of the internet
can be fostered. Officials from DTI and the Home Office have had
meetings with representatives from internet auction sites and will be
seeking to ensure that all online auction sites assist law enforcement
in fraud investigations and have robust measures to restrict services to
individuals involved in such occurrences.
Government is also
involved in the development of Project Endurance, an initiative which
will launch an internet security public awareness campaign in 2005. The
project is an alliance of public and private sector bodies, which brings
together a number of UK Government departments and law enforcement
organisations with a number of high profile private sector companies.
This campaign is to be targeted at micro business and consumers,
primarily aimed at helping these users gain confidence in using the
internet.
General advice about “ internet crime – prevention advice” is available
from:
www.homeoffice.gov.uk/crime/internetcrime/index.html
Q7. What
is an escrow service?
Many sites offer escrow services where, for a small fee, the escrow
service acts as a neutral third party. It will hold the buyer’s payment
and forward it to the seller when the buyer receives and approves the
item. Be wary, as there are bogus escrow services that fail to pass the
money to the seller.
Q8. I
have been advised not to trade outside of the internet auction site.
Why is this?
If
someone invites you to deal away from the internet auction site by
offering to sell the same item for the same or a lower price, be
careful; if you buy off-site you lose any protections the site may
provide and significantly increase your risk of being conned.
Q9. The
buyer has overpaid me and asked me to send him the balance. Should I be
wary?
Yes. There
are a number of internet scams and people are advised to be cautious
before agreeing to part with any money. You might be sent a cheque for
more than the price advertised, the buyer may wish to cancel the order
or ask that you give him a cheque minus the value of the goods. After
the amount is credited to your account, you may find yourself out of
pocket as the funds will not necessarily be available; check with your
bank.
If you have
been a victim of fraud please report it to the Police. Advice on
internet scams can be found on the Consumer Direct factsheet at:
www.consumerdirect.gov.uk/goods-service/scams/index.shtml
 Back
to CCP's Fact Sheets page
|
