ABA Family Legal Guide

Computer Law

Online Purchases

Cyberspace Auctions

How should I protect myself, and how should I pay for the product?

With online auctions, the age-old rule "Let the buyer beware" certainly applies. If yours was the highest bid, you will generally deal directly with the seller (not the auction house) to complete the deal.

Hence, it is essential for you to be knowledgeable about Web-based auctions. You should take special care to familiarize yourself not only with the rules and policies of the auction site itself but with the legal terms (warranties, refund policy, etc.) of the seller's items on which you wish to bid. Also, if you are buying from an individual, some online auction sites offer feedback areas where customers discuss their experiences with a particular person auctioning off goods. Before submitting a bid on an item, check the remarks made about the seller. Additionally, some sites offer some insurance protection for your purchases.

Other precautions include verifying the seller's identity and asking about return policies. You should also find out what the seller will charge for shipping and handling. It is risky to pay by certified check or money order. If you pay by credit card, you can challenge the charge with the credit card company if the merchandise does not come or is not what you thought you had bought. You can also protect yourself by paying upon delivery. Another alternative is to restrict your shopping to cyberspace auctioneers that provide fraud resolution, fraud protection, or similar services to ensure the privacy and integrity of online transactions.