Online Commerce

Besides changing the way our society collects and distributes information, the internet has significantly changed commerce. An internet connection allows us to look up song lyrics, a presidential candidate’s background, the local traffic report, and the cost of a pair of boots at a department store across the country. If we have an internet connection and a mailbox, we can order any kind of merchandise from an essentially unlimited list of vendors spanning the globe.

With the benefits, also come some hazards. To ensure a positive, safe experience for all its members, families must be aware of the online shopping risks– and then keep current, keep communicating, and keep checking.

Keep Current
Many online shopping dangers will be avoided if you can identify the specific threats.

I. Evaluate the authenticity of an online vendor and/or sale.

Sellers: Make sure you are dealing with a legitimate person. Anyone can set up a selling account under any name.

Auctions and other selling forums: Make sure you read the rules of the forum. Many seller’s also have their own stipulations. Read all the fine print.

Shipping: Read the shipping information. As you shop, factor in the shipping rate into the cost of the item. Sometimes an item will appear to be a “good deal,” but the shipping makes it less cost effective.

Payment: When possible, always use a credit card for online purchases. If something happens, you can cancel the charge.   Never use cash or money order. These transactions lend themselves to fraud and scamming. For example, if you send cash, you have no guarantee the seller will send you your item.  Never give a seller your Social Security number or driver’s license number or any other financial or personal information unless you are positive about why it is being collected and how it will be used and protected.

II. Know the terms for illegal online commerce. If something happens, you will know how to properly identify the breach of contract. The FTC’s website, OnGuardOnline.gov, includes the following as types of common online fraud:

• Failure to send the merchandise
• Sending something of lesser value than advertised
• Failure to deliver in a timely manner
• Failure to disclose all relevant information about product or terms of sale
• Bid siphoning
• Second chance offers
• Shill bidding
• Bid shielding [1]

Keep Communicating
Involve kids in the process of learning how to navigate online commerce sites. Read the policy agreement and/or forum rules together. If making a purchase for their hobbies or pursuits, involve them in the research process. Use the proper names for forum transactions. Let your children experience critical thinking skills as you model the process of making a purchase.

Point out how fraud works as you research and make purchases. If you get a phishing email, show it to your kids, and discuss how you know it is fraudulent.

Discuss safe practices for making credit card purchases.

Keep Checking
Establish family guidelines or procedures for making online purchases. For example, children know they must ask for permission before buying something online; or children know there is a specific credit card used only for online purchases.

Have a family meeting to discuss these guidelines and to discuss problems as they arise– in this way, everyone will learn from mistakes and future problems will be prevented.

References:

1. OnGuard Online. (2008, February). Internet Auctions: Quick Facts. Retrieved from http://www.onguardonline.gov/topics/internet-auctions.aspx