Word of Advice

19 October 2009

Virtual shopping spree

Got a serious online shopping addiction? Or have you heard of this new fangled thing called internet shopping and you want to give it a go?

People tend to think that buying things off the internet makes the rules a bit murky. But the law doesn’t actually change when you are buying online. Buying from a website at a fixed price is like buying from a shop. The only trick is finding out what country the shop is in. You’ll also want to consider how you pay for it and any extra costs that may be involved.

Where is the shop’s home base?

If the company isn’t in New Zealand then New Zealand laws may not apply. To find out if the country is based in New Zealand, look for New Zealand contact details. A “.co.nz” URL could also mean it is based in New Zealand, but not necessarily. If you aren’t sure then contact the company to ask.

In New Zealand

If you are buying at a fixed price then your rights are the same as in a shop and the Consumer Guarantees Act applies. That means if the item isn’t an acceptable quality then you can return it to get a refund, replacement or repair. However, the Consumer Guarantees Act doesn’t apply to auctions, competitive tenders or private sales.

Overseas

If the company is based in another country then you might need to do some research to find out what laws apply. Or you can check the company’s terms and conditions to see what you can do if the goods that arrive are not acceptable. You will also want to consider the impact of exchange rates and any extra bank fees for spending money overseas. Find out what the total cost will be in New Zealand dollars.

Postage

The cost of postage could make your purchase a lot more expensive than you thought. Also the company probably won’t take responsibility for the item getting damaged or lost in the mail. Find out if there are safer options for getting the item, and consider getting transit insurance for big items.

Secure payments

Before you make a payment check that the site is secure. The payment web page needs to start with “https”, instead of just “http” and there should be a padlock icon in the browser to represent a secure page. If it isn’t secure, then don’t buy anything through this website.

Paying by credit card

If the goods don’t turn up you may be able to get a charge back on your credit card. This means you can contact the credit card company and tell them you didn’t receive the goods. The credit card company may reverse the payment. Check the terms and conditions on your credit card to see if you can do this. There is usually a short time limit for asking the credit card company to do this, so you need to act fast.

Looks too good to be true

If you find a terrific offer then you need to either check it out carefully or ignore it. If something looks too good to be true, then it may be a scam. Scams are made easier through the internet since people can pretend to be anyone and anywhere. Get especially suspicious if you are asked to pay by money transfer to an overseas location.

Visit here for more information on your consumer rights and how to recognise a scam.