Online auction fraud includes fraud due to the misrepresentation of a product advertised for sale through an Internet auction site, the non-delivery of an item purchased through an Internet auction site or a non-payment for goods purchased through an Internet auction site.

• Non-Delivery of Goods and Services
• Non-Payment of Goods Delivered

Tips

Keep the following tips in mind before you enter personal information on a Web site or decide to make a purchase online:

• Deal with companies or individuals you know by reputation or experience. If you aren't familiar with the company, do your research. Find out their address and phone number. Do not conduct business with a company that doesn't list a physical address or telephone number on its Web site.
• Read the terms and conditions of the contract to make sure you understand the delivery options, return policy, and product or service warranty. For international transactions, ask for information about the exchange rate and any applicable duties and taxes.
• Look for a privacy policy. Be sure that you are comfortable with how the company collects, protects, and uses your personal information before you submit any details. Responsible marketers have an "opt-out" policy, which allows you to choose whether your information is shared with third parties.
• Ensure the business has a fair and clear process for submitting complaints and/or cancelling orders.
• Make sure transactions are secure. Do not enter any financial information if you see a broken-key or open padlock symbol on your Internet browser. This means that the transaction is not secure and could be intercepted by a third party. When the key is complete or the padlock is locked, your browser is indicating a secure transaction.
• Remember, unlike secure order forms on a Web site, e-mail messages are not private. Do not send confidential personal or financial information by e-mail.
• Check for endorsement by an association or a quality assurance program. There are several "seals of approval" for Web sites that confirm the credibility of the company and the Web site. For example, the Canadian Marketing Association member logo signifies a company that abides by the CMA Code of Ethics and Standards of Practice, which includes a comprehensive privacy policy and a section on responsible Internet marketing.

Includes the non-delivery of goods or services that were purchased or contracted through the Internet, excluding Internet auctions. Example: Common occurrence – purchases made through on-line classified ads in which payment is made but delivery does not occur.

Non-payment for Goods Delivered

The non-payment for goods that were delivered. Example: Common occurrence – purchases made through on-line classified ads in which delivery is made but payment does not occur.