With just a click of the mouse, shoppers can now buy nearly any product online – from groceries to cars, from insurance policies to home loans. The world of electronic commerce, also known as e-commerce, enables consumers to shop at thousands of online stores and pay for their purchases without leaving the comfort of home. For many, the Internet has taken the place of Saturday afternoon window shopping at the mall.

The same things can go wrong with online shopping as happens in the real world. Sometimes it is simply a case of a computer glitch or poor customer service. Other times, shoppers are cheated by clever cybercrooks.

1. Shop at Secure Web Sites

How can you tell if a web site is secure? It uses encryption technology to transfer information from your computer to the online merchant’s computer. Encryption scrambles the information you send, such as your credit card number, in order to prevent computer hackers from obtaining it en route.

2. Research the Web Site before You Order

Do business with companies you already know. If the company is unfamiliar, do your homework before buying their products. You can also research a company in Internet yellow pages, through the Better Business Bureau, or a government consumer protection agency like the district attorney’s office or the Attorney General. Remember, anyone can create a web site.

3. Read the Web Site’s Privacy and Security Policies

Every reputable e-commerce web site offers information about how it processes your order. It is usually listed in the section entitled Privacy Policy. You can find out if they intend to share your information with a third party or affiliate company.

4. What’s Safest: Credit Cards, Debit Cards, Cash, or Checks?

The safest way to shop on the Internet is with a credit card. In the event something goes wrong, you are protected under the federal Fair Credit Billing Act. You have the right to dispute charges on your credit card, and you can withhold payments during a creditor investigation.

5. Never Give Out Your Social Security Number

Providing your Social Security number is not a requirement for placing an order at an e-commerce web site. There is no need for the merchant to ask for it. Giving out your Social Security number could lead to having your identity stolen.

6. Disclose Only the Bare Facts When You Order

When placing an order, there is certain information that you must provide to the web merchant such as your name and address. Often, a merchant will try to obtain more information about you. They may ask questions about your leisure lifestyle or annual income. This information is used to target you for marketing purposes. It can lead to "spam" or even direct mail and telephone solicitations.

7. Keep Your Password Private

Most reputable e-commerce web sites require the shopper to log-in before placing or viewing an order. The shopper is usually required to provide a username and a password. Never reveal your password to anyone.

8. Check the Web Site Address

Above the web site at the top of your screen is a rectangular window that contains the web site address. By checking that address, you can make sure that you are dealing with the correct company. Cyber-thieves have created web sites that look convincingly like the web sites of well-known companies. These sites capture the credit card numbers of unwary shoppers.

10. Shop with Companies Located in the Unites States

When you shop within the U.S., you are protected by state and federal consumer laws. You might not get the same protection if you place an order with a company located in another country.

Used with permission of the Privacy Rights
Clearinghouse, http://www.privacyrights.org.