Consumer Forum

E-commerce and its scams put consumer groups on high alert

If you pay attention to trends and statistics, recent reports describing emerging patterns of e-commerce (shopping online) will make your hair stand on end.

Online retail sales grew 29.7 percent to $17.2 billion in the fourth quarter of 2003. The Commerce Department reports that e-commerce sales in the fourth quarter accounted for 1.9 percent of total retail sales, compared with 1.6 percent during the same period in 2002. Total e-commerce sales in 2003 were estimated at $54.9 billion, up 26 percent from 2002.

Dovetailing with that information, the Pew Internet and American Life Project reports that the number of consumers age 65 and over shopping online has increased 47 percent since the year 2000 and yet only 22 percent of those 65 and over has caught the Internet bug to date. And people marching toward retirement age (49 to 64) make up the fastest-growing group turning to the Internet for communication, information, and shopping. The handwriting is on the wall: We have a problem, right here in River City.

For 32 years, complaints from consumers who felt cheated or misled by mail-order companies have consistently represented 70 percent to 90 percent of requests for assistance received at COMBAT. E-commerce has become the 21st century version of mail order, and the growing number of Internet-related complaints COMBAT receives each year reflect the above trends.

And the problem doesn’t stop in living rooms, dens, or with our elders. In just the past six months, the number of COMBAT business members requesting help with Internet-related transactions gone sour has increased by 12 percent. Companies are increasingly turning to online shopping in search of better deals on consumable supplies, equipment and other necessities.

The stereotyped mail order customer has always been Mom ordering a salad shooter or weight-loss product in response to an advertisement. But that profile now includes business owners shopping for the best price on a replacement toner, inkjet cartridge, hotel room, airline rate, long-distance service, software or electronic organizer.

The implications are clear. Whether shopping at home or at the office, we are ALL consumers – individuals, families, and companies alike. As more and more people go online, helping agencies are becoming overwhelmed. Groups like TRIAD are doing great work to inform older citizens and others about identity theft and other fraudulent practices. COMBAT not only engages in consumer information programs, but actively seeks to help Maine families and businesses recover lost dollars. In just the past seven years, COMBAT has brought $1,467,000 in lost cash and merchandise back to Maine. But despite the efforts of these organizations, nothing is more effective than taking personal responsibility.

Do all you can to protect yourself while shopping online:

. Deal with well-known and trusted companies.

. Make payment by credit card rather than bank account debit because you will have better recourse through built-in credit-card protections.

. Do business with local companies where you can talk to a friendly face rather than a blue screen.

. Write Consumer Forum if you experience dissatisfaction with a transaction and have been unable to resolve the matter yourself.

The struggle against Internet fraud and deception is a real David and Goliath affair. It will be costly and long. For information on how you can become part of a statewide effort to protect Maine’s homes and offices, write “ProtectME,” P.O. Box 1183, Bangor 04402 (include a postpaid, self-addressed business size No. 10 envelope) or e-mail: ProtectME@consumerprotect.org. In either case, be sure to include your full name and mailing address.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT-Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. Individual membership $25, business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, PO Box 1329, Bangor 04402-1329.