Advice before you buy

General shopping advice for saving money and staying safe

Shop around for the best value

Compare products and prices to make sure you are getting value for money. It helps to shop around to compare:

• prices
• uses
• abilities
• quality.

Read the product description carefully for words such as 'second-hand' or 'refurbished'.

Protect your details and shop safely

• Safeguard your personal details. A reputable business will never ask you for your bank account and password information. Never give these details out.
• Pay by credit card or PayPal. Paying by credit can provide extra protection when shopping. If you have concerns, you can contact your credit card provider and request a chargeback while the matter is investigated. You can also use a service like PayPal for online transactions or other online transaction services as they may offer additional buyer protection if you do not receive your order, or it shows up different than described.  

Keep your purchase documents

Hold onto your transaction documents. If you’re shopping online from a computer or mobile device, save or print a copy of your order once you complete your purchase. You should also keep any acknowledgement email with information about your order. You might need to refer to these records later if there is a problem.

Always read the fine print

Work out the total cost and do not just rely on the headline price. There may be additional fees that depend on:

• length of use or stay
• booking or cleaning fees
• shipping or delivery fees
• credit card surcharges.  

Always read the seller’s refund and return policies before making a purchase.

Getting the most out of your online purchases

Before you purchase anything, follow these essential tips to protect yourself.

Make sure you can use your purchase in Australia if buying something from overseas

There may be compatibility issues when buying electrical and audio visual equipment from overseas. For example, the supply of domestic electricity in the US is 110 volts, while in Australia it is 240 volts. This means that electrical equipment made for the US will not work here unless it’s connected:

• to a transformer, or
• the device has a self-switching power supply.

If you are buying clothing or shoes, sizes can vary. So, check the size conversion table before making your purchase.

Look at the total cost when buying something from overseas

Compare the total cost. If you’re considering buying goods from overseas, remember to include the total costs relating to:

• handling
• shipping
• insurance
• currency conversions
• any import duties and taxes.

That overseas price might not be such a good deal after all.

Make sure you are allowed to buy the product in Australia

Check with Australian Customs whether an item can be legally brought into Australia. Australian Customs can also tell you the import duty or tax you’ll need to pay before you can collect the goods.

If you’re buying from overseas, Australian Consumer Law may not apply, and your protections may be limited.

Staying safe when shopping online

Take the following precautions when shopping online:

• Secure your online passwords with a password that’s hard to guess.
• Secure your computer or mobile device and keep your apps, browser and antivirus software up to date.
• Check the web page security and only fill in credit card details on a secure web page that has https://.
• Check your credit card statement to make sure you’ve been charged correctly for purchases and contact your credit card provider if there is a charge that looks suspicious. Request a chargeback while they investigate.
• Monitor your child’s access to shopping sites to avoid bill shock due to unexpected purchases by your children.
• Check the online seller’s reputation and avoid sellers with a reputation for not supplying goods, misleading descriptions and poor quality items.
• Online sellers should still have a physical address and telephone number. Confirm these details before making a purchase.
• If you want to buy from an Australian retailer, always check if the site URL has .au at the end and if they have a physical office location in Australia that is not a vacant lot or virtual office.
• Beware of scams and do a web search with the name of the seller or web address and include words like 'scam' or 'review'. Results should show you anything bad that has been published about the seller.

Buying from a private seller online

The Australian Consumer Law does not apply when a consumer buys from a private seller and the item is not sold in the course of their business. However, consumers are still guaranteed clear tile of the item, unless they were told otherwise before the sale. This means that the seller must make sure:

• that no one will try to repossess, or
• take back the item, for example, if it was stolen or sold without the owner's consent or there was still money owing on the item.

The seller may also have their own refunds and returns policy with additional rights. Read the policy on their web page or profile. Consumers should contact the seller to negotiate a solution. 
 

Making the most of sharing economy platforms

When using one of these services, it can be difficult to work out who to contact if there is a problem, for example:

• contacting the owner of the platform
• the person providing the service, or
• both.

Sharing economy platforms are now extremely popular and if you are using them, you should:

• read the platform’s terms and conditions and understand their complaint management process if they have one
• remember that you have consumer rights and might be able to cancel the contract and obtain a refund if things go wrong
• use the review and rating systems of the platforms
• look at the information such as cost, photos, location or amenities to help you make an informed decision.

Some platforms can protect you if things go wrong. Make sure you understand what cover is available and what is not. If in doubt, ask the platform.

You should also be aware that some platforms may:

• charge higher amounts during peak times
• penalise you for cancelling a service.

Understand how the pricing works before signing up. If the person on the platform providing the product or service is a private individual and is not running a business some consumer guarantees do not apply.

Finally, watch out for scams. Do not arrange payment to a trader outside of the platform. This is how scammers operate.

Watch our video to learn more about the sharing economy. 

Using group buying and daily deals websites

When using group buying or daily deals websites make sure you:

• check the terms and conditions on group buying sites carefully, including expiry dates on vouchers
• are prepared for delays when making bookings because group sales can create a lot of demand
• check the voucher validity period and the refund policy if for instance, the supplier is unable to provide the service in this time, stocks run out, or the supplier goes out of business before the goods or services are supplied.

What to do before you use an online auction

Before registering or joining an online auction site, you should read the terms and conditions and understand all the fees and charges. These can include: 

• registration
• administration fees
• refund or exchange policies, or
• being charged to bid even if you did not win the auction.

Keep in mind that if you are unhappy with your purchase, you have less ability to seek a remedy than you would have if you made your purchase from a business in Australia.

Check if the site has:

• buyer protection policies
• complaint handling procedures
• a dispute resolution process.

Before buying at auction, check seller reputation using the feedback ratings and do some research on the product, for example, check the quality and average market value of the goods.

Finally, do not enter into an arrangement with a seller to buy privately outside the auction site. This could expose you to a scam and void buyer protection policies provided by the site.

In lots of auctions, the seller is a private individual which means any disputes are a civil matter, not a NSW Fair Trading issue.

What you should be aware of when using traditional auctions

An auction is a public sale where consumers bid for goods. The seller may be a private individual or a business, and the goods are sold to the person who makes the highest bid. Final bids are usually binding.

When you purchase something at a traditional auction, you have limited protection under Australian Consumer Law. However, you cannot be misled about things like the features or standard of the product or their price. You still have the right to expect the auctioned goods to be sold with ‘clear title.' This means the seller must have the right to sell the goods. If there are any restrictions on ownership such as debts or mortgages, these must be disclosed before the goods are auctioned.

For example, if a car was purchased using a loan and the owner wanted to sell before repaying the loan, the debts associated with the car loan must be disclosed before the auction. This allows potential buyers to know what they are getting.

It’s important to note that auctioned goods do not have to meet consumer guarantees relating to:

• acceptable quality
• the product being ‘fit for purpose’
• accurate description
• the availability of spare parts and repair
• manufacturer’s warranties.

This means we are unable to help in most disputes about auction purchases. We can help you if:

• the seller did not provide clear title, or
• the auctioneer misrepresented the goods you purchased.

Some auctions are covered by specific legislation, including auctions of motor vehicles and real estate.

Things you should know about infomercials

Infomercials often involve direct response television marketing. Direct response television relies on viewers to place orders for goods while, or immediately after, they are shown on television. These promotions urge viewers to respond quickly and to use credit cards to make a purchase.

Be careful, because sometimes infomercials and television product placements aim to trick shoppers into believing the products are featured on their merits, rather than because someone is paying for them to be shown to you.

Provided you purchase from an Australian commercial or shopping network, you are entitled to the same consumer protections you would expect from a physical retailer.

Questions to ask before making a mail order

Advertisements and catalogues can make products appear better than they actually are. So, you should ask:

• Is it possible to inspect the goods before buying them?
• Can I return the item and receive a refund if they are not what I wanted?
• Is the price really lower than what a regular store would charge?
• What do the postage and packaging add to the price?
• Do the goods come with a warranty?

Removing yourself from an unsolicited mailing list

If you are receiving unsolicited mail, you can write and ask for your name to be removed from their list. If you do not want any personalised direct mail sent to you, contact the Australian Direct Marketing Association (ADMA). ADMA will add your name to a database that is distributed to their members on a regular basis.