Online shopping - when things go wrong

The online market is borderless, making shopping interstate or overseas as easy as clicking a mouse. The global and faceless nature of online shopping can sometimes present hurdles if a problem occurs with your purchase. The following information should help you to overcome them.

Your online rights 

When making a purchase from an online seller based in Australia, you have a number of basic rights. The Australian Consumer Law (contained in a schedule to the Competition and Consumer Act 2010) makes it unlawful for a trader to mislead or deceive you about your purchase. This includes the purchase price and any claims made in advertisements.

Where problems arise with your purchase you may be entitled to a remedy such as a refund, replacement or repair.

If you buy from an online seller based overseas, you may not have the same basic rights. There may also be practical difficulties in obtaining a remedy from an overseas-based seller, so check the terms and conditions of the contract before you buy.

Your online rights at auction

Online auctions can be fun and a great way to grab a bargain, but you need to be particularly careful – most private auctions are a case of 'buyer-beware' and there are normally no returns or refunds if something goes wrong.

When you buy at auction from a business, you are still entitled to expect that the business will provide the product as it was advertised - the business cannot misrepresent the product or its attributes in any way.

Whether you buy from a business or private individual, the seller must have the right to sell you the goods. It is unlawful for someone to sell you something that was stolen or which they didn’t own. If there are any restrictions on ownership, these should be made clear to you before you purchase.
 
Double-check if you have actually purchased at an auction – many auction sites include normal sales where you can buy at a fixed price. In these cases, you have the same rights as any other non-auction purchase.

See the Online auctions webpage for more information.

Your online rights: what to do when you have a problem

The following steps may help you resolve a problem with an online purchase:

• Search the seller’s website for help. Find out whether the seller has any processes in place for resolving disputes. These are sometimes called buyer protection policies, complaints handling policies or dispute resolution services. Read the terms and conditions as these policies may only cover certain disputes.
• Contact the seller. If there is no guideline on the seller’s website advising you of how to resolve a problem, contact them yourself. Email them your problem and preferred remedy and include supporting evidence such as photos. Keep copies of the advertisement, receipts, order details and any correspondence.
• Contact the ACCC or your local consumer protection agency. They can explain your consumer rights and options, and in some circumstances may be able to investigate. Your local consumer protection agency may also be able to conciliate (help you negotiate with the seller).
• Contact your bank. If you have paid by credit card, your bank may be able to reverse an unauthorised credit card charge or a transaction that was not fulfilled.
• Seek legal advice. If you can’t resolve the problem, each state and territory has a small claims court or tribunal where you can make a claim (usually for a small fee). Bear in mind it may be difficult to pursue an online seller, particularly one who is based overseas. You may want to seek independent legal advice to see if this option suits your circumstances.

Dealing with an overseas seller

If the seller is based overseas, follow the steps outlined above. However, if you are still unsuccessful, you may want to consider the following:

• Lodge a complaint with Econsumer. An initiative of the International Consumer Protection and Enforcement Network (ICPEN), E-consumer receives online shopping complaints relating to overseas traders.
• Your report will go into a complaints database shared with consumer protection agencies in other countries, who can use it to investigate companies and individuals, and uncover scams. There is no guarantee that an international agency will follow up individual complaints—this will depend on its policies.
• Contact the ACCC or the consumer protection authority in the seller’s country. They can provide you with information about your rights and how you can enforce them, and in some circumstances may be able to investigate.