 The Federal Trade Commission recently posted a guide to the ins and outs of online auctions--and how to avoid getting scammed--at www.OnGuardOnline.gov.
You'll find the basics on how online auctions work, what buyers and sellers should know before they participate, and laws regarding auction transactions. The FTC also offers tips on how to avoid fraud and what to do if you become a victim of it. "AuctionAction," an interactive game, tests your knowledge of auction rules and potential pitfalls. It also links you to FTC advice on related topics, such as online shopping, and to the Better Business Bureau's online complaint page.
Among the tips the FTC recommends:
- Read the auction's Terms of Use. Auctions may charge fees and offer varying levels of protection. Some, for example, offer free insurance or a guarantee if an item isn't delivered, isn't authentic, or otherwise is not what the seller claimed.
- Don't pay with cash and don't wire money. Better options include paying by credit card or by an online payment service.
- Know what you're bidding on. Print out the description of the item and read it carefully, especially the fine print. Save all e-mails and other correspondence from the site and the seller.
- Don't be lured off the site. The FTC reports that some con artists lure bidders away from auction sites by offering a lower price for the same item. They take the buyer's money, but don't deliver the item. By going off the site, buyers also lose the auction site's protections, such as guarantees.
According to the FTC, it received 80,450 complaints last year regarding online auctions, second only to identity theft. Most concerned late shipment or non-shipment and products that weren't of the quality advertised. Other complaints included bogus online payment or escrow services and fraudulent dealers who lured consumers from legitimate sites with the promise of better prices. Most complaints were directed at sellers, though some concerned buyers, too.
The FTC launched this site late last year. "We want to provide actionable information for people to have a better Internet experience not marred by a scam, fraud, or hacker attack," says Nat Wood, FTC assistant director for consumer and business education. |
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