Holiday Shopping?

How To Be On Guard When You’re Online

Thinking about shopping for the holidays? It’s no secret that browsing and buying online can save 

you time, money, and effort. The Federal Trade Commission (FTC), the nation’s consumer protection 

agency, says shoppers who stop and think before they click can prevent an online Scrooge from 

interfering with their purchases and ultimately, their holiday fun.

The FTC and the technology industry recently launched OnguardOnline, a campaign to help 

consumers integrate online safety into their daily online routines. The agency says that consumers who 

take a few precautions when they’re online can help minimize the chances of a mishap. Among the 

tips from OnGuardOnline.gov are:

* Know who you’re dealing with. Anyone can set up shop online. Confirm an online seller’s 

physical address and phone number in case you need to get in touch with them. If you get 

an email or pop-up message from the seller while you’re browsing that asks for financial 

information, don’t reply or click on the link in the message. Legitimate companies don’t ask 

for this information via email or pop-ups.

* Read between the lines. Read the seller’s description of the product closely, especially the 

fine print. Words like “refurbished,” “vintage,” or “close-out” may indicate that the product 

is in less-than-mint condition; name-brand items with “too good to be true” prices could be 

counterfeits.

* Calculate the costs. Check out websites that offer price comparisons and then, compare 

“apples to apples.” Factor shipping and handling into the total cost of the order. Then, stack 

these costs against your budget and needs.

* Pay by credit or charge card. Do not send cash under any circumstances. If you pay by credit 

or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under 

this law, you have the right to dispute charges under certain circumstances and temporarily 

withhold payment while the creditor is investigating. In the event your credit or charge card is 

used without your knowledge and permission, you generally are liable for no more than $50 

in charges per card. Many companies do not hold consumers responsible for any unauthorized 

charges made online, and some card issuers may provide additional warranty, return, and/or 

purchase protection benefits.

* Check out the terms of the deal, like refund policies and delivery dates. Can you return 

the item for a full refund? If you return it, who pays the shipping costs or restocking fees? 

Check on when you can expect to receive your order. The law requires sellers to ship items 

as promised or within 30 days after the order date if no specific date is promised. Can the 

recipient return your gift? If so, ask that a gift receipt be included in the package.

FTC Consumer Alert

Federal Trade Commission Bureau of Consumer Protection Office of Consumer & Business Education
* Keep a paper trail. Print and save records of your online transactions, including the product 

description and price, the online receipt, and copies of any email you exchange with the seller. 

Read your credit card statements as you receive them to be on the lookout for unauthorized 

charges.

* Don’t email your financial information. Email is not a secure method of transmitting 

financial or personal information like your credit card, checking account, or Social Security 

number. If you begin a transaction and want to provide your financial information through 

an organization’s website, look for indicators that the site is secure, like a lock icon on the 

browser’s status bar or a URL for a website that begins “https:” (the “s” stands for “secure”). 

Unfortunately, no indicator is foolproof; some fraudulent sites have forged security icons.

* Use anti-virus software and a firewall and update them regularly. Anti-virus software 

protects your computer from viruses that can destroy your data, slow your computer’s 

performance, cause a crash, or even allow spammers to send email through your account. It 

scans your computer and incoming email for viruses, deleting them. Your anti-virus software 

should update routinely with antidotes to the latest “bugs” circulating through the Internet. 

Firewalls help keep hackers from using your computer to send out your personal information 

without your permission. Think of a firewall as a guard, watching for outside attempts to 

access your system and blocking communications to and from sources you don’t permit. If 

your operating system doesn’t include a firewall, get a separate software firewall, or install a 

hardware firewall — an external device that includes firewall software.

* Check a company’s privacy policy before doing business. It should let you know what 

personal information the website operators are collecting, why, and how they’re going to use 

it. If you can’t find a privacy policy — or if you can’t understand it — consider taking your 

business to another site that’s more security-conscious and customer-friendly.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices 

in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file 

a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTCHELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity 

theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available 

to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

November 2005