Internet Auctions Quick Facts
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 advising consumers how to guard against the risks associated with Internet auction sites. Details are available from Consumer Direct at: http://www.consumerdirect.gov.uk/before_you_buy/online-shopping/internet-auctions
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 Consumer Direct.
• Never pass on details of your bank account and be careful about other personal information.
• If it looks 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?
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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 BERR 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.
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 web site.