The Citizen, 2005-10-13, Page 19THE CITIZEN, THURSDAY, OCTOBER 13, 2005. PAGE 19.
Huron East man loses money on e-Bay auction
A Huron East man contacted OPP,
Sept. 26 regarding an e-Bay auction
purchase that didn't arrive.
According to police, earlier in the
month, the victim had won the hid
on a 1999 Grove Scissor lift, which
is an elevation device used lor
construction. Communication was
done through e-mails with the owner
of the item, who supposedly lived in
New York State. The victim sent
$3,800 U.S. in total to cover the
purchase and delivery charges.
On-line auctions are becoming
very popular with more than 35
million people participating daily.
However. OPP say that four in 10
buyers and half of the sellers said
they've encountered problems with
auction transactions.
“To make the most of this exciting
new marketplace. auction
participants need to know how to
protect themselves against fraud and
other problems." said Sr. Const. Don
Shropshall.
Most auction bidders are looking
for bargains, hard-to-find items or
things they collect. The average
purchase is $100 or less, but some
people spend much more. Many
buyers pay be sending a cheque,
cashier's cheque or money order
directly to the seller.
"That's fine if everything goes
smoothly, but it there's a problem by
the time you discover it your money
is gone." said Shropshall
Some auction sites have “feedback
lorums" where buyers can post
messages about their experiences
with sellers, but only hall ol the
bidders surveyed said they always
check that information Few bother
to contact other sources or
information about complaints
against sellers such as consumer
agencies or Better Business Bureaus.
The most common problem for
buyers is late delivery. Other
problems they experience include
receiving items that are different
than promised, items arriving in
damaged condition, or never getting
the items at all.
Sellers also report problems such
as late payments, non-payments,
buyers changing their minds,
cheques bouncing, or buyers using
stolen credit cards.
Whenever you pay in advance for
something or ship an item before
you've been paid there is some risk.
One way to reduce the risk is to use
credit cards for payment, as an
increasing numberof on-line auction
buyers are doing. That enables
sellers to get their money faster and
avoid bad cheques (stolen credit
cards accounted for only one per
cent of sellers' problems).
Buyers can dispute the charges if
the merchandise was misrepresented
or never delivered. liven small lime
sellers can arrange io receive credit
card payment through programs
offered on some auction sites
Another option is to use an escrow
service, which holds the buyer s
payment and forwards it to the sellei
when the buyer has received and
approved the item by the agreed-
upon time. Either buyer or seller can
pay the small fee •involved.
Unfortunately, the survey showed
that many people aren't familiar
with the escrow services.
Shopping on-line safely means
following these six steps. First use a
credit card. This is the safest way to
pay because you have the legal right
to dispute charges for goods or
services that were never ordered,
never received, or misrepresented.
Second, ask for “substitute” or
single-use credit card numbers.
Some credit cards now provide
substitute or single use numbers,
linked to your account that you can
use for one purchase only,
(sometimes they can also be used for
regular payments to the same
company.)
Since you never put your real
account number on-line your
financial information is safe from
abuse by hackers or dishonest
i ompany employees.
Third look lor clues about
security When you provide
information, the http at the
beginning ol (he address bar should
change to https or shltp. Your
browsei may use a symbol to show
whether the information is encrypted
or scrambled as it is being sent. See
what websites say about how they
safeguard your information in
transmission and storage. Don't
provide sensitive information by e
mail.
Fourth, know the real deal. More
than half of the consumers surveyed
thought they have three days to
cancel an on-line purchase. There is
no automatic cancellation, so get all
the details before you buy. a
complete description of the items,
the total price, including shipping,
the delivery time, warranty
information, the return policy and
what to do if you have problems.
Fifth keep proof handy. Print and
file the information in case you need
proof later.
Sixth, get the scoop on the seller.
More than a quarter of (he survey’s
respondents believed that companies
must be screened before they can put
up websites. Not so.
It's important to check the
complaint records at your local
consumer protection agency and the
Better Business Bureau. Get the
physical address and phone number
m case you must contact the seller
off-line.
Look for sellers that belong to
programs that encourage good
business practices and help resolve
complaints.
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