PAGE 10 � S T A R S A N D S T R I P E S � Thursday, March 19, 2009
Despite complaints of fraud, online auctions
remain a fun, efficient, and relatively safe way
to shop -- if you act prudently. Here's how:
Before bidding
Become familiar with the auction site.
Never assume that the rules of one auction site
apply to another. If the site offers a step-by-step
tutorial on the bidding process, take it. It may
save you frustration and disappointment later.
Find out what protections the auction site
offers buyers. Some sites provide free insur-
ance or guarantees for items that are not de-
livered, not authentic, or not what the seller
claims. Know exactly what you're bidding
on. Read the seller's description of the item
or service, and if a photograph is posted, look
at it. Read the fine print. Look for words like
"refurbished," "close out," "discontinued," or
"off-brand" -- especially when shopping for
computer or electronic equipment -- to get a
better idea of the condition of the item.
Try to determine the relative value of an
item before you bid. Be skeptical if the price
sounds too low to be realistic. "Brick-and-mor-
tar" stores and price comparison sites may be
good for reality checks.
Find out all you can about the seller. Avoid
doing business with sellers you can't identify,
especially those who try to lure you off the auc-
tion site with promises of a better deal. Don't
trust e-mails alone. Some fraudulent sellers
have used forged e-mail headers that make
follow-up difficult, if not impossible. Get the
seller's telephone number as another way to
get in touch. Dial the number to confirm that
it is correct. Some auction sites post feedback
ratings of sellers based on comments by other
buyers. Check them out, but remember that
some comments could be posted by "shills" the
seller paid or asked to write favorable things.
Consider whether the item comes with a
warranty, and whether follow-up service is
available if you need it. Many sellers don't have
the expertise or facilities to provide services
for the goods they sell. If this is the case with
your seller, be sure you're willing to forfeit that
protection before placing a bid.
Find out who pays for shipping and deliv-
ery. Generally, sellers specify the cost of ship-
ping and give buyers the option for express
delivery at an additional cost. If you're uncer-
tain about shipping costs, check with the seller
before you bid.
Check on the seller's return policy. Can
you return the item for a full refund if you're
not satisfied with it? If you return it, are you
required to pay shipping costs or a restocking
fee?
E-mail or call the seller if you have any
questions. Don't place any bids until you get
straight -- and satisfactory -- answers.
When bidding
Establish a top price and stick to it. This
can help ensure that you get a fair price and
protect you from "shill bidding." Don't bid
on an item you don't intend to buy. If you're
the highest bidder, you're obligated to follow
through with the transaction.
Save all transaction information. Print the
seller's identification, the item description, and
the time, date, and price of your bid. Print and
save every e-mail you send and receive from
the auction company or the seller.
Before paying
Protect your identity. Never provide your
Social Security number or driver's license
number to a seller. Don't provide your credit
card number or bank account information
until you check out the seller and the online
payment or escrow service, if you're using one,
and ensure their legitimacy. Never disclose
financial or personal information unless you
know why it's being collected, how it will be
used, and how it will be safeguarded.
Protect your funds. Know what form of
payment the seller accepts. If the seller ac-
cepts only cashier's checks or money orders,
decide whether you're willing to risk sending
your payment before you receive the product.
Never wire money to a person you don't know
or whose identity you can't verify.
If the seller insists on using a particular
escrow or online payment service you've never
heard of, check it out. Visit its Web site. Be
suspicious of any site that is generally of poor
quality with misspelled words or claims that it
is affiliated with the government. Call the cus-
tomer service line. If there isn't one -- or if you
call and can't reach someone -- don't use the
service.
Check with the Better Business Bureau,
state attorney general, or consumer protection
agency -- where you live and where the online
payment or escrow service is based -- to see
whether there are any unresolved complaints
against the service. A lack of complaints
doesn't mean that a service doesn't have any
problems. Many scammers change their com-
pany names often.
Your Legal Obligations
Under federal law, you're required to advertise
your product or service and the terms of the sale hon-
estly and accurately. You can't place "shill" bids on
your item to boost the price or offer false testimonials
about yourself in the comment section of Internet auc-
tion sites.
You're prohibited from auctioning illegal goods;
some auction sites have further prohibitions on sales
of other items. While many auction sites monitor to
ensure that illegal items are not being offered, the re-
sponsibility for ensuring that a sale is legal rests with
the seller and buyer.
You are required to ship merchandise within the
time frame specified during the auction, or within 30
days, if a time frame is not specified. If you can't meet
the shipping commitment, you must give the buyer an
opportunity to agree to the new shipping date or can-
cel the order for a full refund.
Advertising your product
When describing your item and its condition, state
whether it's new, used, or reconditioned.
Anticipate questions buyers might have and ad-
dress them in the description of your item or service.
When possible, include a photograph of the item.
Specify the minimum bid you'll accept.
Specify who will pay for shipping, and whether
you'll ship internationally.
State your return policy, including who's respon-
sible for paying shipping costs or restocking fees.
Dealing with bidders
Respond as quickly as possible to bidders' ques-
tions about the item or the terms of the sale.
When the auction closes, print all information
about the transaction, including the buyer's identifica-
tion; a description of the item; and the date, time, and
price of the bid. Save every e-mail you send and re-
ceive from the auction site or the successful bidder.
Contact the successful buyer as soon after the auc-
tion closes as possible; confirm the final cost, includ-
ing shipping charges, and tell the buyer where to send
payment.
Arranging for payment
If you accept credit card payments from the buyer
directly, bill the credit card account only after you've
shipped the product.
If a buyer insists on using a particular escrow or
online payment service that you've never heard of,
check it out by visiting its Web site or calling its cus-
tomer service line. If there isn't one, or if you call and
can't reach someone, don't use the service. If the ser-
vice claims to be affiliated with a government agency,
that's a sign of a scam.
Before agreeing to use an online payment or es-
crow service, read the terms of agreement. If it's an
online payment service, find out who pays for credit
card charge backs or transaction reversal requests if
the buyer seeks them. Don't use an online escrow ser-
vice that does not process its own transactions, but that
requires you to set up accounts with online payment
services. Legitimate escrow services don't do this.
Look out for fraudulent checks or money orders.
Sometimes, your bank may not alert you that a fake
check or money order has been returned until after you
have shipped the merchandise. If you are suspicious
about a check or it's from a third party, call the person
who wrote the check to verify that they have authorized
it. If you receive a check or money order for an amount
that exceeds the successful bid, and the buyer asks
that you wire the excess funds back to him or to a third
party, do not wire the money. Instead, return the check
to the buyer, and do not ship the merchandise.
--Federal Trade Commission
Tips for buyers
Tips for
sellers
ONTHEAUCTIONBLOCKONTHEAUCTIONBLOCK

Page 1Page 2Page 3Page 4Page 5Page 6Page 7Page 8Page 9Page 10Page 11Page 12Page 13Page 14Page 15Page 16 Produced by PageSuite