Self-help

This page highlights some tips for participants in online auctions - self-help for C2C buyers and sellers. It is currently under development.

     guidelines

Most national consumer organisations and trade practice regulators have published guidelines about what participants can expect and what to look out for.

Two examples are the checklist from the US National Consumers Organisation and the Federal Trade Commission's Internet Auctions: A Guide for Buyers and Sellers.

We'll be pointing to others shortly. In the interim we've collated comments in several Australian and overseas guides.

     do's and don'ts

As the New Yorker suggested in a famous cartoon, in cyberspace it's often the case no-one knows you're a dog ... or that you're dealing with a rat.

• understand the site and its rules. Most C2C online auctions list items that people want to sell but don't verify that the items actually exist or are accurately described. Some studies have suggested that up to 20% of items listed either don't exist or don't match descriptions
• do your homework, whether you're a buyer or a seller. Is the vendor legitimate? Does the site's feedback section feature negative comments about the vendor? Are there negative comments elsewhere on the web? US surveys suggest that 25% of participants have experienced "problems" in online auctions. Trust marks and other quality seals don't cover sales by individuals
• recognise that vendors can 'salt' or 'plant' positive feedback. Does the vendor (or buyer) have an online history - an email address (and thus a new identity) is easy to acquire
• seek a physical address and other verifiable identification. Most guides recommend the name, street address and telephone number to check them out or follow up if there is a problem. Don't do business with sellers who won't provide that information.
• recognise that consumer protection law varies across jurisdictions - most regimes don't address private sales - and that enforcement by government agencies, private lawyers or alternative dispute resolution (ADR) services may not be practical. Online auctions are now in the top 5 for complaints to most national consumer watchdogs, ahead of dodgy car deals or insurance problems
• check guarantees and logistics information - can an item be returned? When will it arrive? What happens if it's damaged when it arrives? What happens if it subsequently becomes defective? Do you have to return it to the vendor in Tajikistan or Romania for a service?
• be wary of claims about the value, rarity or condition of collectibles
• choose the safest payment scheme - a credit card (you have some leeway in disputes about non-delivery or misrepresentation), an escrow agent, cash on delivery or a surrogate currency such as PayPal. Most guides suggest that requests for cash are a clear indicator of problems ahead.
• recognise that auction sites are there to make money, not to act as consumer watchdogs (and few invest large-scale resources in policing misbehaviour) but do alert the operators if you've been ripped off.

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