Online shopping boom sparks fresh warning for consumers
Shoppers have spent more money and time online since the pandemic started and this trend is tipped to continue. Here’s how to avoid the traps.
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Online shopping has boomed during the coronavirus pandemic and its increased popularity is expected to continue as Australia emerges from lockdown.
But online retail’s new-found favour also brings potential dangers for shoppers unfamiliar with some of the traps that can cost them money.
The Australian Competition and Consumer Commission says all the usual consumer rights apply when shopping online in Australia, but warns people who buy from overseas sellers may find it difficult to get repairs, replacements or refunds.
It says you should always shop around and compare prices, and only buy from sellers that have:
• A good reputation.
• Clear processes for replacements and refunds.
• Clear security and customer privacy systems.
• Displayed their business registration number, physical address, phone and fax numbers.
ASIC’s Moneysmart.gov.au senior executive leader of financial capability, Laura Higgins, also warned that consumer rights with overseas online sellers might be different.
“Some banks may charge international transaction fees if buying overseas,” she said.
“Check your online banking regularly to ensure you’ve been charged the correct amount.”
Ms Higgins said online shoppers should make sure websites were secure.
“Look for ‘https’ or a closed padlock in the web address bar,” she said.
“Do your research before buying from a company you haven’t dealt with before. Read reviews and don’t click links directly from social media or other websites.”
Payments provider Klarna Australia and New Zealand’s country head, Fran Ereira, said shoppers should understand who they were buying from.
“If an offer seems too good to be true, then do some more digging, look at reviews of the site, look at their social pages, check out their shipping and returns policies, and make sure you’re protected before you commit,” she said.
Ms Ereira said consumers should be confident they could afford to pay for anything they were buying.
“Think about what you need versus what you want,” she said.
“One of the most important things about shopping online is making sure you can return items. “The key here is that you can return either for free or to store. This ensures the saving you may have just made on the purchase isn’t eroded if the need to return the item arises.
“It’s also worth ensuring that returns are accepted with full refunds to your payment choice as you don’t want to be stuck with a credit note that you may forget to use.”
Originally published as Online shopping boom sparks fresh warning for consumers