Buyer beware: Online customers may get more than they bargain for

By Naomi Johnson

Consumer groups are sending a message of ‘buyer beware’ to online shoppers this holiday season.
This warning comes at a time when many consumers are tempted to shop online rather than face the madness of the holiday rush at the mall.

According to a survey released last month by the Boston Consulting Group, 29 per cent of Internet users will buy a holiday gift online, and revenues this season will reach $23-million, tripling last year’s online holiday sales.

But consumers scrambling to finish their holiday shopping online may end up getting more than they bargained for, says Jenny Hillard, vice-president responsible for policy and issues for the Consumers Association of Canada.

She worries online shoppers may let down their guard because they are rushed, leading to a number of pitfalls.

“We’re telling people to be exceedingly cautious,” says Hillard. “There’s very little consumer protection for people who are shopping on the Internet.”

In its first year online, O’Shea’s Market Ireland on Sparks Street has taken precautions to ensure the security of its online customers’ orders.

Because customers don’t actually fill out an online order form, their information is protected.

After choosing from the Irish gifts featured online, customers then send their order by fax, phone, mail, or e-mail. As an extra precaution, customers are specifically instructed not to include their credit card information when ordering. A staff member later collects that information by phone.

Staci Rodgers, an O’Shea’s employee of four years, estimates the orders placed as a result of the Web site account for about one-quarter of the store’s business and the holiday season will be a measure of its success.

“I think this season will sort of be more telling and people can find us a lot more easily,” says Rodgers.
But one of the pitfalls of shopping online is that there are many unknowns.

At a conventional store, consumers know what country or city the store is in, how to get a receipt for a purchase and what to do if there’s a problem with the merchandise.

Online shoppers often take this information for granted. When buying online, it is important that consumers also consider details like extra charges, shipping costs, what currency they’ll have to pay in, and who pays the cost of returning goods.

“Think of all the things you normally know when you’re shopping in a store and make sure you’ve got them all in writing,” advises Hillard.

But even then, online shopping does not offer any guarantees, as one Ottawa consumer found out.
According to Leslie King, executive director of the Better Business Bureau of Ottawa and Hull, an Ottawa resident complained after buying an item through an online auction house without ever receiving it.

Unfortunately for the resident, the person who sold the item has since disappeared and the auction house cannot be held responsible for the loss, says King.

“There’s not a lot of recourse,” says King. “All you can do is complain to the auction house and make sure they don’t have the right to pretend to sell things again.”

King advises consumers to research companies before buying merchandise online and to call the Better Business Bureau to find out their track record. Consumers should never give credit card numbers or personal information on Web sites that are not encrypted in order to prevent being defrauded, she adds.
Since the online shopping trend shows no sign of stopping, Hillard says it’s essential for consumers to be informed and vigilant when shopping online this holiday season.

“Be terribly careful,” pleads Hillard.