Tips for shopping online with confidence
This content is from a recent statement from the Minister for Fair Trading released by the Office of Fair Trading (Qld), with some comments about compliance by www.onlinelegal.com.au for our primary site and rebrand affiliates.
The internet provides consumers with huge advantages in terms of convenience and savings. But how can consumers be sure it is safe.
Fair Trading Minister Margaret Keech says consumers need to have confidence to shop online.
“This comes with understanding your rights and taking smart steps to protect yourself,” Mrs Keech said.
To take full advantage of the online shopping experience, Mrs Keech suggests people:
-Know the business: Check the company has a physical address and phone number. If something goes wrong with your transaction, you will have the information you need to make contact with the business. Yes, onlinelegal’s physical address and information About us is published on our web site.
-Know the product: Use the internet to research the product thoroughly.
-Make sure it is legal and will work in Australia. Absolutely. LawPacks are the only Kits that come with legal advice included from Australian practicing lawyers.
-Check the contract: Are the terms and conditions satisfactory? Can the goods be returned if they are faulty? Yes, we have a 30 day money back guarantee on LawPacks. Who pays for postage on returns? There is nothing to post. LawPacks are electronic.
-Check the cost: Compare prices and shop around. Look for hidden extras like currency conversion, taxes, customs duties, delivery fees, packaging and postage.
-Pay securely: Use secure sites . look for a closed padlock or https//: address. Yes. Don’t provide financial information not required for the sale. Yes, in fact onlinelegal does not even get your credit card number - only the bank does.
-Keep records: Make note of any reference numbers. Ask for a tax invoice or receipt. A Tax Invoice is automatically emailed to you by our Server at the point of purchase. A receipt number is generated by ANZ eGate at the point of payment.
-Resolve problems quickly: If a problem occurs, contact the trader as soon as possible. If the problem can not be resolved contact the Office of Fair Trading for assistance.
-Look out for scams: If something seems ‘too good to be true’ it probably is.
“By following these simple online shopping tips, even the most wary online shopper can enjoy their internet shopping experiences,” Mrs Keech said.
For more information on safe online shopping visit www.fairtrading.qld.gov.au.
eCommerce - Tips and Traps (part 2)
eCommerce : I first blogged about this on 19 May and covered:
- Trap 1 - charge-back risk
- Trap 2 - unclear refund and return policies
- Trap 3 - attempt to exclude all warranties
- Trap 4 - unmet expectations Go to part 1.
This is part 2:
Trap 5 - uncertainty about whether a contract is formed
Key Questions:
1. Was it the clear intention of the parties to enter an Agreement?
2. Is it abundantly clear that the customer has consented to the Terms of an Agreement?
For there to be an Agreement the answers to questions 1 and 2 must be yes.
In my view it is generally not enough to have Terms and Conditions on your site. The issues are:
- Were the Terms and Conditions clearly brought to the attention of the customer prior to the formation of an Agreement?
- Has the customer indicated acceptance to an Agreement by clicking “I agree” or similar?
Again, the answers to both these questions must be yes.
Trap 6 - uncertainty about when a contract is formed with a customer
The general principle is that this is at the time of communication of acceptance of the offer (to purchase or sell).
The internet makes this difficult to nail down. Therefore, deal with this very clearly in your Terms and Conditions.
Is the Order a Customer places an acceptance of the offer of goods and services on your web site or is the Order an offer to purchase which you accept by processing the order?
Tip: Whichever one you choose, it should be:
- Clear to the customer
- Consistent across your web site
- Contained in your Terms & Conditions
Trap 7 - uncertainty about where a contract is formed with a customer
This is clearly related to Trap 6, but it can have significant implications as to what system of law then governs the relationship you have with your customer. The system of law then has significant implications on:
- The ease and cost on insisting on compliance with an Agreement; and
- The cost of or ability to obtain any court sanctioned remedies.
This is particularly important for merchants who are supplying internationally. Again, deal with this very clearly in your Terms & Conditions.
eCommerce - Tips and Traps (part 1)
e-Commerce according to all the statistics continues to gain momentum with the online market worth more and more. Through our experience in operating in this sector and advising many clients we offer this list of tips and traps:
Trap 1 - charge-back risk
If a customer frequently uses someone else’s credit card the real card owner will obviously tell their bank that they didn’t authorise the transaction. The Bank will then take the money back from you - charge back.
Tip to avoid charge-backs - try and use a payment gateway where the gateway provided takes the charge back risk (e.g. at www.onlinelegal.com.au this is a major reason that we use ANZ eGate).
Trap 2 - unclear refund and return policies
A money back guarantee often works well on the web. However we have found that it only works well with some limitations.
Tip for money back guarantee. Make it limited in time. It is fair enough that a customer decides within a limited time about whether the product they have purchased is what they expected. Make sure that the obligation to return the goods in the same condition in which they were supplied is clear and who bears the cost and risk of that return. The obligation to make the refund should only arise after the goods have been returned.
Trap 3 - attempt to exclude all warranties
Quite simply, clauses in terms and conditions that essentially say that “we are not liable for anything” don’t work.
Tip for effectively limiting liability - have your lawyer check this part of your terms and conditions if nothing else.
Trap 4 - unmet expectations
Don’t over promise. A wise man once said to me, “Under promise and over deliver.”
Tip for managing unmet expectations. Be realistic in descriptions of goods and delivery times.