A survey from the National Retail Federation found that consumers plan to spend just over $900 on gifts this holiday season and 57% of those purchases will be made online.
At the same time, consumer complaints about online purchases are on the rise. The Federal Trade Commission, a government agency that tracks consumer complaints, states that consumers reported losing $392 million last year to online shopping scams. Most of those involved shoppers who paid for their purchases, but never received their orders.
We receive these types of complaints about online purchases here in the Consumer Protection Unit at the Northwestern District Attorney’s Office. I have some tips for shopping online during the holidays and throughout the rest of the year.
Start with your search. If you know the name of the company you want to buy from, type in the name of the company followed by “.com.” If you’re browsing and you land on a website you’re not familiar with, check it out by typing the name of the site followed by scam or fraud to see what others have to say about it. Scammers may also use ads offering special deals that pop up when you’re browsing the internet. Do your research by checking out the company and the product.
Use caution when shopping on social media. Some scammers set up websites that look good and offer merchandise at low prices. If the price sounds too good to be true, it could be a scam. You might receive poor quality or counterfeit items. You might not receive your order at all.
Before making your purchase, make sure the website is secure. Look for “https://” before the “www” in the URL in the browser’s address bar. The “s” indicates an extra layer of security on the website. Your web browser may automatically flag websites without the “s.” Without the extra security, your personal information or credit card information could fall into the wrong hands because the information you are entering is not encrypted.
Once you’re on the website, check for contact information for the seller or business. You want to know how to reach the business in case there’s a problem with the item.
Also, look for their return policy. Find out how long you have to make a return, who pays for shipping the item back, and whether you will you receive a refund or a credit. If the retailer has a physical location, find out whether you can return the item there instead of shipping it back.
It’s also a good idea to check to see if there is a restocking fee charged for returns. Some items may be labeled “all sales final,” which means you won’t be able to return or exchange them. This may be written in fine print on the item listing or description, especially for items that are marked down or discounted. If the website does not have a return policy or it is vague, you may wish to shop elsewhere.
If you’re shopping at an online marketplace such as Amazon or Walmart.com, understand that you may be purchasing from the merchant themselves or from a third-party seller. You may not have the same protections from a third-party seller that you have when making buying directly from Amazon or Walmart.com. Look for the seller’s company name and check the company out online before making your purchase. Know that their shipping times and policies about refunds and returns may be different than that of the online marketplace.
Don’t be pressured into making a purchase. Some websites use gimmicks such as countdown timers that say the sale price is ending soon or that the deals in your online shopping cart will expire soon. Others may have small pop-up windows on the site claiming that other shoppers are buying the item to make you believe that supplies are running low.
When checking out, look for boxes to check or click on — you may be asked to click or check the box to sign up for emails about sales or special promotions. Sometimes these boxes are pre-checked or already filled in, and you will need to click and uncheck them if you want to opt out of advertising emails or text messages.
Sometimes checking the box will sign you up for a subscription plan where you authorize the company to send you the product automatically every month. Be sure to read the terms and conditions before you sign up for these types of offers or discounts. If you decide to sign up for a subscription, find out how often the products will be sent, what you’ll be charged and how to cancel.
Be wary of the information the company is asking for when you check out. Some companies ask for your date of birth in exchange for a free item or a special discount during your birthday month, but you should be able to opt out if you choose. Check the terms and conditions to find out how to opt out of advertising emails or text messages if you’re not interested in receiving them.
Paying by credit card can protect you if something goes wrong with your online order. You should dispute the charge with your credit card company if you don’t receive the order or if there is a problem with billing. If the seller asks you to pay using gift cards, wire transfers, a payment app or with cryptocurrency, that’s the sign of a scam.
Once you’ve checked out, keep a copy of the invoice or receipt. Make sure you have contact information for the company. Look for email notifications about the status of your order and keep tracking information so that you can follow the delivery. Save your credit card statement showing the purchase. This information is helpful in case there’s a problem with the item or the delivery.
If you have a problem with an item you’ve purchased online, first contact customer service as soon as possible. If you can’t resolve the problem on your own, the Consumer Protection Unit can help. For more information about the consumer assistance process, contact the Greenfield office at 413-774-3186 or the Northampton office at 413-586-9225. You will find a link to the consumer complaint form at NorthwesternDA.org/consumer-protection-unit.
Anita Wilson is director of the Northwestern District Attorney’s Office Consumer Protection Unit, which is a Local Consumer Program working in cooperation with the Massachusetts Attorney General’s Office.