Shopping at auction sites online can be risky

You are relaxing at home watching the television when a commercial comes on featuring an exasperated woman who exclaims: “Then, where can I find it?” The clerk in the commercial then breaks into song, “That’s Amore,” using words that tout eBay, an online auction house. While this particular auction house is the largest and most successful, there are many, many more.

You might ask, exactly what are online auction houses and how do they operate? An online auction house is a company on the Internet that allows people to sell items by using the auction method of selling. The item is listed by the auction house with a set length of time to end the auction. A minimum bid is set, then potential buyers bid on the item. When the auction ends, the highest bidder wins the item. The seller who posts the item for sale pays the auction house a fee for the advertisement placed online and also pays a percentage of the final sales price.

The method sounds great because the buyer is able to get the item he wants at a very good price. However, the good feeling the consumer has from getting a bargain may be short-lived. Customers may find when the items arrive that they were not what they thought they were buying. Shopping by auction online calls for a great deal of “buyer beware.” There are few laws protecting consumers from Internet fraud, and once the item is purchased, the consumer may be stuck with it.

While auction houses depend on the honesty of both parties and most work diligently to quickly remove problem sellers and buyers, in the final analysis it is the responsibility of seller and buyer to work out disputes. It must be remembered that the auction house’s position is that it is merely the channel for sellers and buyers to get together.

These auction houses depend on the honesty of sellers to describe their products as accurately as possible. Not all sellers are created equal, however. Some will use bait-and-switch tactics, enticing with a high-quality item and delivering a poor-quality substitute.

In other cases, the true condition of the article for sale may be masked by a pretty picture of the product online, where damage, blemishes and other defects are difficult to assess.

Auction houses have a rating system for both sellers and buyers, and the wise consumer will look at these ratings closely before bidding. Sellers with high ratings and positive feedback from previous customers are more likely to be honest, customer-friendly, and striving to satisfy you with your online purchase. Those with a number of bad customer references and low ratings should be avoided.

To protect yourself from fraud from sellers who sell products in an online auction house, use the following guidelines.

. Pay attention to the rating system. Use only sellers with the best ratings.

. Talk to friends who use these services. You can learn from their experiences, both good and bad.

. E-mail the seller to confirm your purchase and closely review his e-mails with payment instructions. You might also e-mail other buyers of a particular seller to get their personal rating of that seller.

. There are many great purchasing opportunities online, often for many hard-to-find or nostalgic items from the past. The informed and cautious consumer can often have a great online purchasing experience.

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.