Online shopping and mail order

Introduction

Online shopping and mail order can give you access to a cheaper and wider range of goods and services.

You should be aware of the risks and understand your rights before you buy.

This guide provides information on doing your research, buying from overseas, paying securely online and online classified scams.

Your rights online

When you buy online you are covered by the same laws as when you buy an item or service from a physical store, as long as the online store is an Australian registered business.

Find out more about consumer guarantees under Australian law.


Before you buy online

Before you buy online you may want to check your local shops to see if they can offer a good price and deliver the goods you need.

Ask around for recommendations from friends and family, or search on the internet for reviews or blogs.

Try to use reputable, well-known retail websites.

Research the online seller

For smaller or lesser known online sellers, look for a phone number and physical address and call them if you have doubts.  

You should also do all of the following:

  • read internet reviews on the online retailer by typing their name into a search engine
  • check the seller’s policy on returns, refunds, shipping, insurance and warranties, especially if they are based outside of Australia
  • check the website has a secure payment system
  • phone or email the trader to ask about their goods and services.

Before you buy an item

You should check all of the following:

  • postage and packaging costs
  • refund and return policies
  • if there is a warranty or money-back guarantee - get it in writing if possible
  • if the goods are insured in transit and who pays for insurance
  • any conditions in the fine print
  • confirm when the item will be delivered or set a delivery date
  • if the trader has a street address as well as post office box and phone number, this will make it easier to contact them if there is a problem.

You should keep a record of your transaction by printing or taking a screenshot of your order confirmation, invoice or tax receipt.


Buying from an international trader

When you buy goods or services from an Australian-based online trader you are protected by the Australian Consumer Law.

To find out more go to the Australian Consumer Law website.

If you buy online from an overseas trader, Australian Consumer Law may not apply and may only offer you limited protection.

This means if the goods are faulty you may have trouble getting them repaired, replaced or refunded.

Examples of international traders are:

  • a Hong Kong business selling watches on eBay
  • a store selling clothes, books or DVDs where the business is located in another country.

Know your rights

The business must comply with the consumer protection laws of their own country.

They may also have their own refunds and returns policy with additional rights.

You should read the policy on their website.


Dispute with an international trader

The following page is a guide to what you should do if you have a problem with an item you bought from an international trader.

Step 1. Contact the business

You should speak or write to the business and try to negotiate a solution.

Find out more about writing a complaint letter to the trader and get sample letters. 

Step 2. Try to stop payment or get a refund

If the business does not resolve your issue, your next step depends on how and where you paid for the item.

You bought from an online auction house

Most online auction houses have a dispute resolution service.

For example, you can report an issue to eBay’s resolution centre up to 45 days after the sale, whether you bought the item in an auction or through the ‘buy it now’ method.

If you paid using PayPal, you will be automatically directed from eBay to the PayPal resolution centre. Read more details below.

You can post feedback about the seller on the site to warn the auction house and other buyers.

You paid using PayPal

You can file a dispute through PayPal’s resolution centre within 45 days of paying for an item. You may be covered by PayPal’s buyer protection.

You paid with a credit card

Contact your credit card company to organise a chargeback. This reverses the credit card charge and is similar to a refund.

You should act quickly as many credit card companies have short deadlines for submitting a chargeback request - eg: 60 days.

Chargebacks can take up to one year to be finalised. The chargeback is separate from any other dispute resolution service such as those with eBay or PayPal.

You paid with an online cash transfer

If you used an instant cash transfer system, such as Western Union or MoneyGram, or if you deposited your money directly into the seller's bank account, it can be very difficult to track your money once the seller has collected it.

In this case you should contact the police.

Step 3. Contact their government's consumer body

Contact the government body responsible for consumer protection in the seller’s country about your issue.

Step 4. File a complaint with econsumer.gov

While this will not resolve your complaint, econsumer.gov is where consumers can complain about online and related transactions with foreign companies.

This allows international consumer agencies to gather data to help stop consumer fraud.


Paying securely online

You should use a secure payment system to buy goods online.

You can do this by either:

  • making sure the website is secure
  • using other forms of secure payment such as PayPal.

This will shield your banking details from the online seller.

Don’t give your bank account details to anyone. They can be used to make unauthorised withdrawals.

Secure websites

Secure websites will have:

  • a web address that starts with https://, not http://
  • an image of a locked padlock on the bottom right corner.

If you don't receive your goods

Usually the secure payment system provider will offer a dispute resolution service with a refund option if your goods don’t arrive.

If you have paid by credit card and do not receive your purchase, ask your financial institution for a chargeback.

Never send money by wire transfer. Scammers use wire transfer services to get money fast. Once it’s been collected you can’t get it back.


Online classified scams

You may encounter scammers when buying and selling through online classified sales.  

Scammers posing as sellers

Websites like Gumtree are a great way to buy second-hand items and pay cash on pick-up.

However, in some cases, you may buy items you haven’t seen. The goods may not exist - scammers can copy details from another legitimate ad. 

There are risks when you buy items from private sellers who you don’t meet.

Scammers posing as buyers

It’s not just buyers losing money through scams. Sellers can lose money when scammers pose as potential buyers. 

They might create a story which involves overpaying and then asking the seller to pay the extra money to a fake shipment company or courier.

The whole original payment is then declined by your bank because a stolen credit card or dishonest cheque was used. 

Sometimes the scammers convince the seller to pay transport costs up front and then disappear with that money.

Report scammers

You can fight back by telling website operators about scam adverts. You should also report email addresses used in these scams to the email service providers.

Before you buy

If you are using a shopping website that isn’t a well-known retailer, make sure the business exists by checking the street address and contact details. 

Search online for reviews or blogs. Before entering personal or financial information, make sure the site is secure. Read more about paying securely online.

If you are using eBay to shop online, only use the eBay message service. This helps avoid scams such as fake second-chance offers on email after you lose out to another bidder.

Paying for your goods

If you pay by wire transfer, such as through Western Union or an electronic money system like Ukash, it is almost impossible to trace who received the money.

Even if you do a bank transfer you may struggle to track the transaction with the banks or get your money back through law enforcement agencies. 

Only a secure payment system such as PayPal can give you an opportunity to get a refund if your goods do not arrive.

Scammers also create copycat versions of secure payment websites like Google Checkout or PayPal and send you the link. Do not click on links like this.

You should type the web address, such as www.paypal.com.au, directly into your internet browser.

Fake items

Sometimes fake items are advertised for sale. 

Common fake items include all of the following:

  • cars
  • boats
  • electronics such as phones and cameras
  • concert and event tickets
  • pets, usually puppies.

Puppy scams

Buyers can be drawn in emotionally with a sob story and photos sent by text or email.

They may say the animal is sick and needs treatment before it can be shipped. There may be a fee for transporting the animal in a crate.

To avoid these scams, you should adopt a pet through a local animal rescue centre or buy locally from a reputable breeder.

Find out more about scams and how to report them.

For more advice contact NT Consumer Affairs.