The Law Handbook 2024

Chapter 7.5: The internet and the law 745 On ASIC’s website (www.asic.gov.au) , you can search for registered business names and company numbers for free. What are the transaction details? Knowing the full details of the transaction before entering into an agreement with a trader will help you to know what to expect if you buy the trader’s goods or services. Details you should obtain include: • a clear description of the goods or services; • the full cost in Australian dollars of the goods or services being purchased, including costs like delivery, insurance and credit card charges; • any relevant return, exchange, refund and warranty policy; • when you will receive the goods or services; • the terms of any insurance over the goods or services bought (e.g. whether it includes damage during delivery); • the terms and conditions of the agreement. Read them carefully as they outline what you agree to be bound by. Always print out any terms and conditions that you agree to, because traders may change them subsequently. Keep any correspondence (including emails) between you and the trader, and print out any forms that you fill in and any offers on webpages that you accept, as they will be relevant to your transaction; • the trader’s policy on handling complaints and resolving disputes. Are there any privacy and security concerns? Always check if there is a privacy policy on the trader’s website. The policy should outline why the trader collects your personal information, and how the trader will use this information. Traders might want to use your personal information for marketing purposes or to sell to third parties. The trader’s privacy policy should tell you if this is so. If there is no privacy policy on the trader’s website, you should be concerned because the trader is not telling you what will happen to the personal information you give them. Consumers often use credit cards when shopping online. The nature of the internet means that transmitted information may be intercepted by a third party. To minimise the risk, make sure that the trader is using a secure system for transferring information during a transaction. The most common method of security used in online shopping is the Secure Sockets Layer ( SSL ) technology. SSL technology encrypts data transmitted to protect the information being sent, including your credit card details. An unbroken key or padlock at the bottom of a web browser indicates there is a secure connection, and that the information you send will be encrypted. To obtain information about the security used by a website, double-click the unbroken key or padlock. Internet auctions Consumer protection laws Through internet auction sites (e.g. eBay), individuals can enter into transactions with each other. These transactions are often referred to as consumer-to- consumer ( C2C ) transactions. If the website operator has control over the goods being auctioned it is likely to be a business- to-consumer ( B2C ) transaction. If the website is acting as a trading centre, it is more likely to be a C2C transaction, provided that the vendor is not a business using the site to clear stock. C2C transactions conducted through internet auctions may be regarded as private sales between individuals, and not as trade or commerce, and are therefore not covered by the Competition and Consumer Act 2010 (Cth). This does not mean that the consumer has no rights in this situation, but they have fewer rights than if consumer protection laws applied. If you buy goods or services through an internet auction and consumer protection laws do apply (because you bought from a business, or in the course of trade or commerce) you may still have lower protection than if you had not bought the item at an auction. This is because some of the implied conditions and warranties do not apply when the goods are purchased at an auction. The law varies from state to state. For example, in Victoria, according to the Goods Act 1958 (Vic), goods bought at auction should be of merchantable quality and match the description given or the sample. Before bidding at an internet auction Before bidding at an internet auction, read the auction site’s policies, rules, terms and conditions to understand the service that the auction site is providing and what to expect. Read what the site says about how they handle frauds and complaints. Some sites offer protection to successful bidders in