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Various
Web sites and consumer associations publish guidelines for Web shopping.
These guidelines usually list things consumers should do or watch out for
when shopping online, to be sure they are not taken for a ride.
While the sites do offer some helpful hints, such as reading a product
warranty before buying or tallying shipping charges and taxes to make sure
you really are getting a good deal, they also offer some other tips that
may mean well, but do not seem to tell the whole story.
For instance, many guidelines tell consumers to read the privacy statement
and find out what the site operators learn about their consumers and what
they do with that data.
It’s always a good idea to read the privacy statement, no matter what
site you’re visiting. But, not all sites will give you all the
information you need. A privacy statement may indicate that yes,
demographic information will be sold, but it will not say to whom or for
how long. Or, if data is gathered for a company’s own use, but not for
third parties, that may not be included in the privacy statement.
For example, RealNetworks Inc., was found to be monitoring their
customers’ music preferences, including what CDs they listened to online
and how many songs they copied, and sending this data back to their
Seattle headquarters. While consumer-specific records were not kept, the
fact that this data was being monitored was not disclosed in their privacy
statement. After a security expert discovered the practice, RealNetworks
did update their privacy statement to say the technology is intended “to
understand the interests and needs of our users so that we can offer
valuable personalized services.”
Many Web shopping guidelines urge consumers to look for icons, such as
locks or keys, to see if a site is secure. That’s a great idea but, a
consumer should also make sure it is being used at the time. A little lock
in the corner is no good unless it is enacted.
Most consumer groups encourage Web shoppers to use credit cards when
shopping online, instead of checks or debit cards. While it is true that
most credit card companies limit liability to $50, the Fair Credit Billing
Act does have some limitations that can affect Web shopping.
The Fair Credit Billing Act states that a consumer can only effectively
dispute charges billed to a credit card (but that you have not yet paid)
if all of the following conditions are met: 1. A good faith attempt to resolve
the dispute with the seller has been made; 2. The dispute involves $50
or more; and 3. The dispute arose within
the state of the credit card billing address, or within 100 miles of the
address; and 4. The seller of the goods
has not issued the credit card that you used to pay.
The problem can be with number three: if the goods are purchased online,
there may be some legal uncertainty about where a dispute arose and if it
meets the 100 mile limit. So, in this instance, a check may be just as
good as credit, if not better. Because with a check, if a problem arose, a
consumer could always stop payment on a check or close the account. © Copyright 1995-2000 |
