CYBERSHOPPING
Protecting Yourself When Buying Online
With a few key strokes and the click of a mouse you can shop at home
from your computer. Sounds great, right? No traffic. No parking
problems. No lines or crowds. No hassles with the weather.
Online shopping can give new meaning to convenience and choice. But
before you visit your favorite boutique on the Net, take care to make
your cybershopping experience safe.
The Basics
The Fair Credit Billing Act
Errors
To Dispute a Charge
Unauthorized Charges
For More Information
The Basics
Think security, starting with your connection -- the way your computer
connects through telephone wires to contact the Internet -- and your
browser -- the software that acts like a telephone to receive
information on the Internet.
Unsecured information sent over the Internet can be intercepted. That's
why you should consider a secure browser, which will encrypt or scramble
purchase information. Use a secure browser that complies with industry
standards, such as Secure Sockets Layer (SSL) or Secure Hypertext
Transfer Protocol (S-HTTP). These often are included with Internet
connection services. The credit and charge card industry is working on
an enhanced level of security using Secured Electronic Transactions
(SET). SET protocol provides a highly encrypted communication between
card issuers, merchants and card members.
If you don't have encryption software to assure the security of your
transaction, consider calling the company's 800 number, faxing your
order, or paying by check or money order.
Shop with companies you know. If you'd like to try a new merchant, ask
for a paper catalog or brochure to get a better idea of their
merchandise and services. Determine the company's refund and return
policies before you place an order.
Never give out your Internet password.
Be original when creating your password(s). Consider using a combination
of numbers, letters, and symbols, or use a phrase to remember it. For
example: UR2G$48* -- "You are to give money for eight stars."
Avoid using established numbers for your password, such as your house
number, birth date, or a portion of your telephone or Social Security
numbers. It's a good idea to use different passwords to access specific
areas on the Internet, such as the World Wide Web.
Be cautious if you're asked to supply personal information, such as your
Social Security number, to conduct a transaction. It's rarely necessary
and should raise a red flag. The Internet provides a valuable
information service for consumers. But some con artists who have used
telemarketing, infomercials, newspapers, magazines, and the mail to
attract consumers are turning to the Internet and online services to
promote their scams.
Pay close attention to the information you're entering when you place an
order. For example, an additional keystroke could get you 10 shirts when
you wanted only one. Check to make sure the shipping charge is
acceptable to you and all charges are calculated correctly.
Make a note of the company's shipping time. If you need the merchandise
earlier, ask if your order can be "expressed" for an additional fee.
The same laws that protect you when you shop by phone or mail apply when
you shop in cyberspace: Under the law, a company should ship your order
within the time stated in its ads. If no time is promised, the company
should ship your order within 30 days after receiving it, or give you an
"option notice." This notice gives you the choice of agreeing to the
delay or canceling your order and receiving a prompt refund.
There is one exception to the 30-day rule. If a company doesn't promise
a shipping time, and you are applying for credit to pay for your
purchase, the company has 50 days after receiving your order to ship.
Should you decide to pay by credit or charge card, your transaction will
be protected by the Fair Credit Billing Act. Some cards may provide
additional warranty or purchase protection benefits. If you're not
comfortable entering your credit or charge card account number, call it
into the company's 800 number, or fax it.
Print out a copy of your order and confirmation number for your records.
The Fair Credit Billing Act
Whether you're buying online, by phone, mail, or in person at a store,
using your credit or charge card to pay offers some protections.
Errors
If you find a billing error on your monthly credit or charge card
statement, you may dispute the charge and withhold payment in that
amount while the error is in dispute. The error might be a charge for
the wrong amount, for something you didn't accept, or for something that
wasn't delivered as agreed.
To Dispute a Charge
Write to the creditor at the special address indicated on the monthly
statement for "billing inquiries." Include your name, address, and
credit or charge card number, and describe the billing error.
Send your letter as soon as possible. It must reach the creditor within
60 days after the first bill containing the error was mailed to you.
The creditor must acknowledge your complaint in writing within 30 days
of receiving it, unless the problem has already been resolved. The
creditor must resolve the dispute within two complete billing cycles --
but not more than 90 days -- after receiving your letter.
Unauthorized Charges
If your credit or charge card is used without your authorization, you
can be held liable for up to $50 per account. If you report the loss of
your card before it is used, you are not liable for any unauthorized
charges.
For More Information
The Federal Trade Commission (FTC) publishes brochures on topics such
as: automobiles, credit, health & fitness, investments, products and
services, and telemarketing. You can access the FTC ConsumerLine at
http://www.ftc.gov on the World Wide Web. You also can contact the FTC
at: Public Reference, Federal Trade Commission, Washington, D.C. 20580;
(202) 326-2222. TDD: (202) 326-2502.
The Consumer Information Center (CIC) publishes the Consumer Information
Catalog, which lists more than 200 publications from a variety of
federal agencies. You can access the Catalog and its full-text entries
at http://www.pueblo.gsa.gov. You also can contact CIC for a free
Catalog at: Consumer Information Catalog, Pueblo, CO 81009; (719)
948-4000.
American Express Company can be found on the Internet at
http://www.americanexpress.com.
If you would like to order hard copies of this brochure, please send
your request and $.50 per brochure (check or money order, no cash
please) to: Consumer Information Center, Department 389C, Pueblo, CO
81009
Published by American Express Company in cooperation with the Consumer
Information Center. Information was prepared with the assistance of the
Federal Trade Commission. Copies may be reproduced for nonprofit
educational purposes.
Copyright 1996, American Express Company, Consumer Affairs Office, 801
Pennsylvania Avenue, N.W., Washington, D.C. 20004.