Don’t Shop for Holiday Trouble : Buyers Advised to Keep Their Receipts, Check Warranties

While this is the season to be jolly, it is also the time for holiday shoppers to beware.

Mail order disputes, credit card fraud, late deliveries and flimsy warranties are among the pitfalls that await those running through stores and flipping through yellow pages.

The Federal Trade Commission offers a list of precautionary tips, such as:

--Keep receipts.

--Check out and compare warranties.

--Ask about return policies.

--Determine the availability of a product before ordering it.

--And when ordering by mail, make sure the company is reputable.

Amanda Pedersen, deputy director of the FTC’s Bureau of Consumer Protection, said in a pre-Christmas rush interview, “It’s a good idea to shop early. That will give you more time to protect yourself.”

But Pedersen conceded, “I guess we all do that late shopping. We just need to be careful.”

Contact Company

Pedersen said if a consumer runs into a problem, the first thing they should do is contact the company. If that doesn’t work, try the Better Business Bureau or the state or local consumer protection agency.

Both the Better Business Bureau and the consumer protection agency can be found in the telephone book, the latter under listings for the local government.

Each year, Pedersen said, the U.S. Post Office receives about 50,000 complaints involving mail order purchases, many of them during the holidays.

The FTC’s Mail Order Merchandise Rule provides consumers protection. But it is only in place if the order is made by mail--not phone.

Among the safeguards:

--A mail-order company must send ordered goods within the time period specified in the ad or within 30 days if no shipping date is specified.

--If the company cannot meet this deadline, it must send notification, and it must permit the consumer to either get a refund or agree to the delay.

In recent years, credit card fraud has become America’s fastest growing crime.

It is estimated that the total loss from illegally used credit cards in 1982 topped $1 billion--a three-fold increase from 1979. In 1982, 73 million of the 600 million credit cards in circulation, were reported lost or stolen.

But even those in the wallets of consumers are unlawfully used by persons who obtain the credit cards in several ways, such as salvaging carbons slips from the trash or getting them from a dishonest sales clerk.

Keep Numbers Confidential

Others get the numbers by posing as a telephone solicitor, who, after making a bogus sale, asks the person for their credit card number.

The FTC advises people not to give out their credit card numbers on the telephone unless they initiate the call. It also urges people to destroy credit card carbons and to keep good records.

If a credit card is lost or stolen, the owner should call the card company immediately. Under federal law, once people alert the company, they are not liable for any purchase. Regardless, their maximum liability is $50 per card.

When buyers pay with credit cards, the Fair Credit Bill Act protects them against billing problems. The FTC advises consumers to review billing statements for errors.

If a consumer feels a charge is a mistake, he should write the creditor, who, in turn, has several obligations, including initiating an investigation and correcting any error within 90 days.