Bidder Beware

As a buyer, you can't physically examine the item you want to bid on. The best you can hope for is a detailed description and digital photos. You'll have to trust the accuracy and that you'll receive your purchase in the stated condition. That's where the potential for fraud is greatest. Typically, auction sites claim no liability, although some do provide limited guarantees. It's up to you to be a smart consumer. Here's how:

Make sure you understand how the auction works before you bid and what the obligations of the buyer and seller are. For instance, if you win a bid, but change your mind, are you on the hook? What sort of protection against unscrupulous sellers does the site offer?

Get the seller's vital information, including name, address and phone number. Ask the seller how she ships, how long delivery takes, whether insurance is available and inquire about the return policy. Check the auction site to see if there is any negative feedback about the seller.

E-mail or call the seller directly if you have any questions about the item. Don't bid unless you are satisfied with the answers.

If a deal seems too good to be true, it probably is. It might mean the item is stolen or fake. A healthy dose of skepticism prevents you from becoming a victim.

Using a credit card affords you the same protection you have when making purchases in the real world. For expensive purchases, consider using an escrow service. Never send cash and avoid sending checks or money orders, especially to post office boxes. If you must pay this way, only send payment to the address listed by the seller on his or her auction page.

Print a copy of your transaction for your records.

Online auctions remain wildly popular, because the vast majority of people have a positive experience. In the event of problems, those in the United States can contact the National Fraud Information Center or the Federal Trade Commission.

Last update: Jan 12, 2010