Word of Advice

13 October 2008

Shopping securely online

The internet opens up a whole range of buying options and many of us are switching to the internet to make our purchases. Whether you’re buying clothes, computers or DVDs, internet shopping can be a hassle-free alternative to a spending a Saturday afternoon in a busy shopping mall.

However, below are a few things you should keep in mind when shopping online:

Before you make a purchase

If it’s the first time you’ve dealt with the company, note 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 phone number.

If you’re buying goods from overseas, remember that you may have to pay for postage costs and possibly customs duty. Factor in these hidden costs to compare the goods to locally available ones. Sometimes what can look like cheap deals from overseas end up being more expensive when you add on these extra costs.

Paying for goods

Most internet sites take credit cards for payment. The advantage of using a credit card is that some card companies may be able to reverse the transaction if there’s a disputed charge. You’ll need to contact your bank for further details on this.

Only use your credit card for payment online if the retailer uses a secure payment system. Otherwise you should get your card number to the business another way.

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. 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

• Print out a copy of your order and a copy of the acknowledgement you 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 will normally appear somewhere on your screen.
• 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 in town in relation to faulty or incorrectly 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 (ICPEN) website [external website], for contact information of some overseas consumer agencies. The Ministry of Consumer Affairs is a member of ICPEN.

Further information

For more information about your rights as a consumer, visit the Ministry of Consumer Affairs.