Shopping over the Internet has become a common activity for many consumers. Although it can be a fast, easy and convenient way to make a purchase, it is also becoming easier for scam artists to take your money. Auction rip-offs, purchase scams, spam (unsolicited emails) and phishing (an unsolicited email trying to 'phish' personal information from you) are all popular methods used by scam artists.

Following the basic rules for smart in-store shopping will serve you well when shopping over the Internet. The extra challenge the Internet presents is that some of the clues you use, perhaps even unconsciously, when shopping in person are missing when you shop online. Since the electronic merchant you deal with may be in another town or province, or even on a different continent, you cannot walk around the premises and get a feel for the place, its products or personnel.

Know who you are Dealing with

Reputable online merchants will post plenty of information about themselves, where they are located, their phone and fax numbers and details such as the following:

• Links to objective evaluations of their products and services, such as product reviews in magazines.
• Membership in organizations designed to guarantee standards, such as industry associations or the Better Business Bureau.
• Certificates or seals of quality.
• Other options for purchasing the products or services listed on the website (by phone, at store locations or through a catalogue, for example).

Know Exactly what you are Buying

The vendor should provide enough information for you to properly evaluate what you are buying, including details such as the size, colour, weight and texture of the product.

Know what you are Agreeing to

Every time you choose to buy something online you are entering into a contract with the vendor. Any reputable vendor will provide the terms of this contract on its website. Read them and keep a copy for your reference. Insist on the following:

• Information detailed and complete enough for you to understand the terms of sale.
• A description of the company's privacy policy and security features.
• An explanation of how the company handles complaints and returns.
• The delivery date for your product(s).

Be concerned in these cases:

• When the company does not provide the terms and conditions on its site.
• When the terms and conditions they do provide are so complex and detailed that they are difficult to understand, which may discourage you from reading them.

See also, "Contracts".

Know what you are Paying

• Make sure you ask for the total price, including tax, shipping and handling. International transactions may be subject to additional costs such as customs and border fees. Be sure to get a clear idea from either the retailer, or the customs broker the retailer uses, of how much those fees will be before you finalize your purchase. These fees can be quite expensive. For more information on fees, contact the Competition Bureau.
• Don't forget about the exchange rate. The charge on your credit card will likely be different from the quoted price as a result of it being converted into Canadian dollars.
• The Canada Post Comparison Shopper provides Canadians with an online comparison shopping tool featuring products from both Canadian and U.S.-based retailers (that ship into Canada). This tool provides you with details such as pricing, shipping, brokerage fees and duties before you make the decision to purchase. Using this tool allows you to easily and accurately compare real prices.

Payment System Security

Before providing your credit card number or other financial information, make sure the merchant has a secure transaction system. Most Internet browsers indicate when you are using a secure Internet link. Look for one or both of these clues:

• An icon, often a lock or key somewhere on the outer edge of your browser window; the lock should be in the locked position and the key should be unbroken.
• Whether the website address begins with https:// — the s indicates that the site is secure.

Know what Information you are Giving to the Vendor and Why

Never deal with vendors who do not post a privacy policy committing them to protecting your personal information. For many Internet vendors, your personal information is as important as the money you pay for a product or service. Make sure you know why vendors are asking for information and what they intend to use it for; ask yourself whether it is reasonable for the vendor to use your information in this way. Canadian companies are subject to privacy laws. For more information, contact the Privacy Commissioner of Canada.

Online Shopping by Children and Teens

Children and teens may be deceived by items that turn out to be not as big, as much fun as they looked online, or of acceptable quality. Young people often do not understand the real cost of some purchases and they may also give out personal information without realizing the consequences. Teach them to be aware of the risks and show them how to protect themselves when buying online.

Here are links to some websites that can help you and your family become Internet savvy:

• Media Awareness Network
• Be Web Aware
• Canadian Marketing Association
• Advertising Standards Canada

Online Auctions

• Online auctions can be risky. Know what you're buying and get a description of the item in writing in case the product does not meet your expectations.
• When you are buying from a private individual, consumer protection laws may not protect you. Read the rules of the auction site; better sites will keep records of customer satisfaction and should also have dispute resolution mechanisms.

Buying Internationally

• Remember, buying internationally involves more risk. Different laws and standards apply, often making it difficult to resolve potential conflicts to your satisfaction if a problem arises.
• Check the Canada Border Services Agency Web site regarding the admissibility requirements of certain goods.
• When calculating the price, factor in shipping and handling costs, taxes, duty and currency conversion.
• Check that products meet Canadian safety standards. To find out what the Canadian standards are for the item you plan to purchase, visit the Canadian Standards Association’s international Web site.

If you have a problem with a foreign online vendor, report the incident to www.econsumer.gov/english, a reporting service run by the International Consumer Protection and Enforcement Network on behalf of 21 national governments.

Warning Signs

There are a number of practices that no reputable vendor would use, including these:

• Asking for credit card information before allowing you to enter a site.
• Any attempt to rush you into a decision.
• Unsolicited offers that arrive by email. There may be a few honest people doing this, but the vast majority of unsolicited offers are of little value, and many are outright fraudulent. In addition, unsolicited email can contain computer viruses. The best approach is to delete all unsolicited email offers. Do not reply to these messages, even to remove yourself from a mailing list.
• Things that sound too good to be true usually are.
• Sites that seem to take over your computer. Be especially wary of vendors who use "browser traps," which are designed to make it hard for you to get out of a site. A browser trap might, for example, disable the "back" button on your browser or eliminate all your recently visited site options. Other traps will open new windows every time you try to close one. Do not do business with anyone who uses these techniques and never make a purchase to get out of the trap.

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