Be Cautious When Doing Business Online
By: Source: AARP.org Date Posted: 2005-03-20 12:08:22
Using computers and the Internet can help you efficiently manage personal affairs, such as shopping or banking. But you need to have the necessary computer skills and resources, to be familiar with the risks, and to know your consumer rights.
What You Should Know
Going Online
It's important to get proficient with the Internet before you do business online. Consider taking a hands-on class that will give you a basic vocabulary, an Internet overview, and some experience. Local libraries, many senior centers, community college classes (for non-technical students), civic organizations and others offer free access to computers and Internet. Some offer training.
Knowing what you want to do - and why - is a key to identifying what you really need. Do an assessment before you go shopping for a computer system, software, or an Internet service provider. It will help you buy only what you really need.
Doing Business Online
Before you change the way you do business now, review carefully what is required to do business on a computer. There are risks for fraud, invasion of privacy, or security failures. To check on the hazards of e-commerce, you can find many resources in public libraries, bookstores, and on the Internet.
Realize that many rules of the road for using the Internet are evolving. Millions of companies, organizations and individuals - some very useful, some fraudulent, some offensive - are on the Internet. You want to make sure you know with whom you're dealing - either through experience or research - before you make an online purchase or provide personal information. Some established consumer protections for doing business in this country have not been fully applied to the Internet world. The risks are even greater for doing business with companies outside the United States.
Be careful about your willingness to deal with legally binding documents online. Be cautious about agreeing to receive or exchange any legally binding electronic document (the so-called digital signature package). You need to carefully assess whether you have the appropriate computer system and software and the personal computer skills to handle important documents electronically.
Keep records organized, updated, and in a safe place where you know that you can find them. Whether your records are electronic or paper-based, it has never been more important to keep back-up copies. The legal standing of electronic documents is not yet established. To protect your rights, you will need to keep important records that document your online activities. Make sure the documents you print from the Internet include the date and time received and the Internet address of the source.
Maintaining Privacy
Guard the security of your financial and other information. Your passwords are an important protection against theft, so do not share them with anyone. Deal with companies that have secure sites. When you connect with a Web site, look for a symbol that indicates whether the connection is secure or not. (These symbols differ, but one browser shows a locked padlock on secure sites). You may also wish to consider getting computer software that can help to secure your personal and financial online activities.
Don't give away privacy. Although no method is foolproof, you can take steps to help prevent Web sites from obtaining information about you without your permission or knowledge. Before you give personal information, read the privacy policies of any company or organization. Use companies that give you a choice about how your personal financial information will be used, and whose reputation you know or have researched.
Know Your Consumer Rights
Know your rights regarding credit cards. Credit cards can protect you when you make online purchases, if you have problems with fraud, theft, or unsatisfactory or non-delivery of purchases. If something goes wrong with an online purchase or your credit card is used without your authorization, you have the same protections as you do for any other type of purchase. If you report any problems promptly, your personal responsibility is limited, by law, to $50.00.
You have the right to complain. For information on where to complain in your community, your state or nationally, consult the "Consumer Action Handbook."
For More Information
American Bar Association
The ABA has created an informational Web site to provide guidance for shopping online.
URL: http://www.safeshopping.org
Center for Democracy and Technology (CDT)
CDT works for individual privacy on the Internet. Their Web site offers information on how you can protect your privacy while online.
http://www.cdt.org/privacy
'Consumer Reports'
"Consumer Reports" ranks e-commerce sites by privacy, customer service, return policies, breadth and depth of product choices and information. On their home page, click on e-ratings. "Consumer Reports" charges for this service.
http://www.consumerreports.org
'Consumer Action Handbook'
The "Consumer Action Handbook," published yearly by the Federal Consumer Information Center, provides advice and consumer tips on numerous topics. Also included is the "Consumer Assistance Directory" with information on where to complain.
URL: http://www.pueblo.gsa.gov/crh/respref.htm
Federal Trade Commission
The FTC offers consumer information on e-commerce and the Internet. You can file a consumer complaint about a violation of a privacy policy, fraud, or other problems on the Internet.
http://www.ftc.gov/bcp/
National Fraud Information Center (NFIC)
The Internet Fraud Watch section of the NFIC Web site provides tips, articles, bulletins and other information that you can use to avoid fraud, protect your privacy, and navigate the Internet safely and enjoyably. If you have questions about promotions in online services or on the Internet, or wish to report possible fraud, use the Online Incident Report Form or Online Question or Suggestion Form features of the NFIC Web site.
http://www.fraud.org/internet/intset.htm
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