Word of Advice

29 January 2008

Internet Shopping

The internet opens up a whole range of buying options for consumers. Many of us are switching to the internet to make our purchases, whether that’s clothes, computers, DVDs, or even our groceries. As a consumer, you should take care when shopping and paying for goods and services over the internet.

Before making a purchase Note down the company's contact details, including a street address and landline telephone number. Don’t rely solely on an email address, a PO Box number or a mobile telephone number.

You should also remember that you may have to pay for postage costs and possibly customs duty if goods are ordered from overseas. All these hidden costs can push up the price of the goods.

Paying for goods online

Most internet sites accept credit cards for payments of goods and services. The advantage of using credit cards is that some credit card companies reserve the right to reverse transactions if there is a disputed charge. Contact your bank for further details on this.

Only use your credit card for payment on-line if the retailer uses a secure payment system. Otherwise it is advisable to get your card number to the business by other secure means.

Problems can arise when the company you are buying from is based outside New Zealand. For example, a guarantee may not be valid in New Zealand, or the goods may not work properly. Although New Zealand law may cover your contract, in practice it might be very difficult to get any money out of a company based overseas.

Tips for shopping online

Always print out a copy of your order and a copy of the acknowledgement that you should receive.

Ensure that the web address of the page starts https:// before you enter any personal information or payment details. The 's' stands for 'secure'. A small padlock normally appears at the bottom of your screen.

Always check your bank statements carefully if you purchase something on the internet. Phone or e-mail retailers directly and ask about the goods and services they provide when dealing with them for the first time

Be wary of offers that appear too good to be true

What to do if things go wrong If you buy goods on the internet, you still have the same rights as if you were shopping on the high street, in relation to faulty or poorly described goods. The laws that apply to over the counter sales also apply to internet sales.

If the business is located in New Zealand you should try and negotiate with retailer by letter or email. Keep a copy of all your correspondence and orders/invoices. If this fails, contact your local Citizens Advice Bureau.

If the retailer is located overseas, visit the International Consumer Protection and Enforcement Network which is a joint venture of International agencies, of which the Ministry is a member. This website contains contact information for some overseas consumer agencies, information on buying online, information on online auctions, advice and guidance on resolving an online shopping complaint, and the opportunity to file an online complaint.