For Immediate Release CONTACT:  Holly Anderson, ext. 114   (202) 835-3323

10/8/98

National Consumers League's Internet Fraud Watch

Online Auction Tips

• Understand how the auction works. Many online auctions simply list items that people want to sell. They don’t verify if the merchandise actually exists or is described accurately.
  
• Check out the seller. Contact the state or local consumer protection agency and Better Business Bureau where you live and also where the company is located. Look at the auction site’s feedback section for comments. Be aware that glowing reports could be “planted” by the seller, and that a clean complaint record doesn’t guarantee that someone is legitimate.
  
• Be especially careful if the seller is a private individual. Most consumer protection laws and government agencies that enforce them don’t deal with private sales, so if you have a problem, it could be impossible to resolve.
  
• Get a physical address and other identifying information. You’ll need the seller’s name, street address and telephone number to check them out or follow up if there is a problem. Don’t do business with sellers who won’t provide that information.
  
• Ask about delivery, returns, warranties and service. Get a definite delivery time and insist that the shipment is insured. Ask about the return policy. If you’re buying electronic goods or appliances, find out if there is a warranty and how to get service.
  
• Be wary of claims about collectibles. Since you can’t examine the item or have it appraised until after the sale, you can’t assume that claims made about it are valid. Insist on getting a written statement describing the item and its value before you pay.
  
• Use common sense to guide you. Ask yourself: Is what the seller promises realistic? Is this the best way to buy this item? What is the most I am willing to bid for it?
  
• Pay the safest way. Requesting cash is a clear sign of fraud. If possible, pay by credit card because you can dispute the charges if the goods are misrepresented or never arrive. Or use an escrow agent, who acts as a go-between to receive the merchandise and forward your payment to the seller. Another option is cash on deli-very. Pay by check made out to the seller, not the post office, so you can stop payment if necessary.
  
• Let the auction site know if you have a problem. Some auction sites investigate problems and abuses. They may also want to know about sellers who don't deliver or misrepresent their wares. A bad record may result in a seller being barred from using the site again.
  

Source: Internet Fraud Watch

For more information, write or call the National Consumers League at 1701 K Street, N.W., Suite 1200, Washington, D.C. 20006, (202) 835-3323.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. NCL's three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concern.