Internet shopping is an icon of the cyber age we live in. Once a novelty, now it is part of our daily living. Recently, I was consulted by clients who do their business online. I’d like take a few moments now to share some of the issues of internet shopping with you.
Issue: Terms of Payment
Because online buyers and sellers do not deal face-to-face, credits come with high risk, as do installment payments. Scams, where payments are not honoured or goods not received, are common.
Therefore, I suggest to my clients that they use payment services that can be tracked and confirmed. For example, either PayPal or credit card payments are preferrable over money orders or cashier’s cheques. Never send cash in the mail.
Note that these services are not free. You should include these charges when you’re comparing online shopping with offline shopping.
Issue: Items Received Differ Substantially from Expectation.
Because of the nature of virtual transactions, buyers can only rely on pictures and other remote representations of the seller. Buyers generally have little or no independent verification as to the accuracy of the description of the item.
One of the biggest problems I have encountered is that unsavoury vendors often pass off counterfeit goods as genuine ones. In this scenario, although in theory there are remedies in law that may provide some relief to the buyers, realistically it is often nearly impossible to pursue these remedies.
I suggest to my clients that buyers must be aware when it comes to online transactions. Only buy from reputable vendors who provide detailed, reliable information on their goods. If the deal seems too good to be true, it probably is.
Issue: Dispute Resolution
Even if there is no misrepresentation involved in the transaction, goods may get damaged or lost when they are shipped. Buyers may also become unsatisfied for other reasons, such as unreasonable delays, or unexpected customs exams, charges, or taxes.
Dispute resolution becomes particularly difficult when buyers and sellers do not reside in the same jurisdiction, as is the case in many internet transactions.
Although in Ontario you may bring a suit against foreign residents as long as they have a real and substantial connection with Ontario, the concern lies in the enforcement of the final ruling. Foreign defendants generally have few if any assets in Ontario, and enforcement of an Ontario judgment outside of the jurisdiction may encounter many difficulties, including concerns of cost.
In summary, online transactions involve certain risks that the buyers and sellers must be prepared to accept. While it is true that many online transactions offer substantial savings, you should pay attention to the following aspects:
- who exactly it is that you’re dealing with,
- how you’ll be paying for the goodsor collecting payments,
- what you can do if things don’t work out.