Bidding online is a popular form of E-shopping and a great way to pick up a bargain. However, it can also be a risk-taking exercise if you are not properly prepared. As with the traditional auction process, bidding online means that you are competing with other shoppers for the sale.

When you buy goods via Internet auction, you are generally not buying directly from the auction house, but from an individual or company who is using the auctioneer's services.

In this case, you will need to engage with the individual or company who sold you the merchandise.

Note that laws will vary from state to state. In the state of Victoria, under the Goods Act, a product bought via auction should be of merchantable (reasonably good) condition and should match the sample and description shown. If you are claiming that the goods were misrepresented, you will need to prove this.

For more information, go to our What to do if something goes wrong page. You'll also find a Fact Sheet on Online Auctions in our publications section.

Tips

• Before you consider bidding or buying, read the terms and conditions on the auction company's site.
• Find contact details for the seller of the goods.
• See if you can check the seller's previous conduct through the feedback forums which are offered on many auction sites.
• For larger purchases, consider using an escrow agent. The escrow service is an independent third party who will hold a payment in trust until the buyer receives and accepts the item.
  

Further information can be obtained in the information sheet Online auctions.

There are articles on the web about exercising caution in auction sites. See, for example, PC World's Going...Going...Gotcha! and the online auctions section of Scamwatch.