Feb. 14, 2000
Going.
Going.
Gone!
The government
today launched an attack
on con-artists who target
internet auction sites.
So, if you're a bargain hunter who shops on internet auction sites, you're being warned to watch out for charlatans. More on the story from Washington Bureau Chief Charles Sherrill.
Auctions of old were touchy-feely affairs. Internet auctions are as dispassionate as it gets.
Christopher Painter, Asst. U.S. Atty., L.A.: "You don't know who the seller is. You don't know where he is. You don't know if the merchandise actually exists at all. And all too often it does not."
Consumer advocates say on-line auctions are the main cause of complaints about electronic commerce:
Susan Grant, Natl. Consumers League: "In 1998 they accounted for 68 percent of the internet fraud reports that we received at the internet fraud watch. By 1999 it was 87 percent."
The Federal Trade Commission says the complaint rate has "absolutely exploded."
Jodie Bernstein, F.T.C.: "There were 107 in 1997, and 10,700 in 1999."
The auction sites themselves aren't usually the problem. It's the unseen sellers.
Joe Curran, Maryland Atty. General: "Who is the seller? What is his or her address? What is his or her phone number?"
The experts offer some other defenses against fraud:
Mr. Painter: "Whenever possible, a consumer should try to use a credit card. Try to use an escrow service. Try to use some other means to cut down on the possibility that the merchandise doesn't exist."
Some sites try to police themselves for unscrupulous sellers. But Uncle Sam is also watching.
Rob Kuykendall, U.S. Postal Inspection Service: "Last year we trained 500 inspectors specifically t handle these type investigations. This year, 800."
Some auction sites rate sellers by feedback from buyers. Check it out. Do your homework so you understand what you're buying and what it's worth. Set a ceiling price and stick to it. And, if you have a problem, ask for help.
If you think you've been cheated or have questions about how to resolve a dispute there are two toll-free phone numbers you can call.
1-877-FTC-HELP connects you with the Federal Trade Commission's consumer office.
1-800-876-7060 reaches the National Consumer League in Washington.
Or you can find them at:
www.fraud.org
Details From FTC
