If Net-Shopping, Remember to Play It Safe

When the nation’s first shopper issues a warning about shopping on the Internet, it’s time to listen. In his radio address Saturday, President Clinton, who said he plans to do holiday shopping online, urged consumers to be careful when buying on the Net.

With cyber shopping expected to exceed $9 billion this holiday season, the president said, “when consumers shop on the Internet, they must take basic precautions to ensure that what they see is what they get.”

The president highlighted three ways for consumers to safeguard their purchases. Other industry experts provided additional cautions to the First List.

* As in the real world, pay close attention to details such as shipping dates and fees, warranties, return policies and a customer service telephone number to call if you have a problem, said the president.

Sites also vary in quality of service, said Mike May, a digital commerce analyst for Jupiter Communications, a New York Internet research firm.

So consumers, beware. When buying on the Internet, an order may be processed in real time--that is, immediately. Or the order may be forwarded to a third party to fulfill it. The problem with this, said Dina Marie Schon, senior vice president and an owner of TransNet Security Inc. in Ontario, is that if a mistake has been made in the order or if the product is no longer in stock, the consumer may only learn of this weeks later by e-mail, perhaps too late for the holidays.

To test if a site is processing in real time, Schon said to enter an order and transpose a few of your credit card numbers. If the site says there is a problem with the number, it is being processed immediately. But if the site thanks you instead, the order isn’t being processed in real time. If you still want to make the purchase, Schon said to call the customer service number to process the order with a person.

A few other factors to consider are: Is the product guaranteed by the site and if so, for how long after the purchase? Who honors the warranty, the manufacturer or the site? If you are unhappy with the product, what are the return options? If it’s from a chain like the Gap, can you return the product to a real store? (Yes, for the Gap.) How do you get credit for a returned item?

Study the delivery schedules, options and fees. Often, if a site’s distribution center is on the other side of the country, it may take longer to get your product. An overnight delivery may be more expensive, but a less expensive option may take up to 10 days. You should look for the same level of delivery service as with traditional retailers.

And, because no one can predict how much merchandise online shoppers will buy this year, shop early, before inventory has been depleted.

“Leaving everything to the last minute is an invitation to disappointment,” May said.

He also cautioned that if you haven’t heard of a merchant site, be careful about using it.

“You would never just walk into a shack off the street and give them your credit card,” he said.

* The president also urged consumers to always buy with a credit card because they have some protections under federal law against unauthorized purchases. Consumers are only liable for up to $50 if they report the fraud within a certain time.

In spite of the fear of fraud, the most likely problem in Internet purchasing is a mistake in the order, said Schon, whose Internet support company provides security and processing for several large Web sites. Many of the orders--35% to 42%--TransNet processes have an error in the ordering, which can be quickly corrected if the credit card process is on real time. These misplaced orders, she said, account for much of why a consumer doesn’t get a product on time.

Credit cards, she said, are processed in many different ways. Any time you make an online purchase, print out your own copy of a receipt. It may help with any problem that ensues.

* Guard your privacy. Clinton said, “Look for the unbroken key or padlock symbols on the order page to ensure that your credit card will be transmitted securely.” Don’t share your passwords with anyone, and read the merchant’s privacy policy to see what information is being collected and how it will be used, he said.

On Netscape, there is a little key symbol, usually at the bottom left-hand corner of the browser screen. If there is a break in the key, the transaction between the browser and the site is not secure. Other search engines use a padlock in the tool bar, which should be locked to indicate a secure communication.

Sites like Amazon.com disclose complete privacy policies point by point. Look to see if the order information is encrypted for security reasons against hackers. And find out if the company sells the information about you to a third party.

There are a few logos of approval that consumers can use as a guideline. AOL and TransNet both have launched a seal of approval to on-site merchants who maintain a level of integrity. AOL’s is a TRUSTe seal.

The president also referred Internet shoppers to the Federal Trade Commission’s online checklist at https://www.consumer.gov.