Before shopping on the Internet, it is important to have an understanding of how things work.

This is especially due to problems of online fraud and misrepresentation. Using your credit card over the Internet warrants a special precaution and you must remember that different countries have different legalities, consumer laws and exchange rates.

Understanding about online security policies, privacy laws, and whom you are dealing with will help protect and ensure a satisfactory sale - or even bargain!

Know who you're dealing with
The more you know about a shop or a service, the better protected you will be against problems such as fraud, misrepresentation or just poor service.

• Shop with the names you know.
• Make sure the vendor provides a street address, business registration details (such as a registered business name or an ACN/ABN number in Australia) and contact details. If you are unsure, try to contact the store before you buy.
  

Know the whole deal
Before you shop online, you need to think about what will happen after you click the "Buy" button.

1. Make sure you know exactly what you're buying. Is there a picture and clear description?
2. Know how much you're paying. Make sure you know the total amount you'll be paying, including delivery, insurance, etc, in Australian currency before agreeing to buy.
3. Find out whether the company offers a warranty on the goods you buy.
4. Check delivery details—both timing and costs.
5. Are the goods insured against damage as part of the delivery deal?
6. Check for a returns policy—can you send back the goods if they are unsatisfactory?
7. Print out copies of any forms you fill in and pages in the site that outline the offer you have accepted. Remember that websites can change overnight. Also, ensure you keep any email correspondence.

Check the site is secure
Read the security policy on the site. A reputable business will explain what measures it has taken to protect your personal details.

• Make sure the site uses Secure Sockets Layer (SSL) technology which is the industry standard for secure e-shopping. By convention, websites that use SSL have website addresses that start with HTTPS: instead of HTTP:. HTTPS stands for Hypertext Transfer Protocol over Secure Socket Layer, or HTTP over SSL.
• Look for an unbroken padlock or key symbol at the bottom right hand corner of your screen. If this appears on your browser, it means any private information you send over the Internet will be encrypted or scrambled. If you double-click on the key or padlock symbol, you can access information about the type and currency of the security offered by the site.

Protect yourself online
As well as checking that the site you're using is secure, there are measures you can take to protect your own safety:

• Don't let anyone else use your name or credit card for online transactions.
• Only share access to your computer and files with people that you know and trust. Learn about file sharing risks.
• Don't store your password or banking details in your email program or on your PC - keep hard copies of private information in a secure place away from the computer.
• Choose hard-to-crack passwords that feature a combination of numbers, symbols and letters.
• Don't use the same password for all your online activities.
• Log out of a site after you use "passworded" services such as e-banking.
• Disconnect from the Internet when not in use.
• Use anti-virus software and keep it up to date.
• Protect your computer from Internet intruders through firewalls.
• Don't open email or email attachments from unknown sources.
• Back up your computer data.
• Regularly download updates to your email and browser software that fix security bugs.
• Only download and use freeware and shareware that is widely used and has a good reputation.

Check the business will protect your privacy
Make sure the business has a privacy policy, and read it. Don't risk parting with your details unless you know exactly what a business intends to do with them. Australian businesses must comply with the provisions of the Commonwealth Privacy Act. For more information about the requirements of the Act, go to the website of the Commonwealth Privacy Commissioner.

Buying from overseas
If you're thinking about buying products or services from an overseas site:

• Check whether it is legal to import this item. For more information, go to the Australian Customs Service.
• Double-check delivery costs – they can really bump up the price of a bargain.
• Be aware of currency exchange rates – once you convert the price, it might not be a bargain after all. The Reserve Bank maintains a list of current exchange rates. Note also that Australian banks may charge a fee on all transactions requiring the conversion of other currencies into Australian dollars.
• Remember that if you buy from overseas, you won't be covered by the same consumer protection laws that apply in Australia. Check the site for any statements about which country's laws apply.

Further reading:
Consumer Affairs Victoria - e-commerce Further information can also be obtained from the fact sheets Shopping online and Top 10 tips for shopping online

Australian Competition and Consumer Commission - advice to consumers on e-commerce

There are various collections of resources that you can browse if you want more information about how the web works.
For example:

• Brint
• CIO magazine's Privacy and Security Research Centre
• Webmonkey
• Webdeveloper
• World Wide Web Consortium