Thursday, April 16, 1998

GOING ONCE, GOING TWICE, SCAMMED

The Internet has provided new ways to find just about anything. For collectibles, computer parts and many other items, online consumers have turned to Internet "auction houses." These sites allow one person to list an item for sale while others bid on it. The seller and the high bidder are given each other's contact information by the site and it's up to them to arrange for payment and delivery. The problem is, while many consumers are paying, not every seller is delivering.

Yesterday, the FTC announced it's first case against an auction sellers. According to the FTC, Craig Lee Hare, aka Danny Hare, did business as Experienced Designed Computers and C&H Computer Services, offered new and used computers and computer parts over auction sites. Buyers who sent their money, but Hare allegedly never sent the computers or refunds. Under the FTC Mail or Telephone Order Merchandise Rule, businesses must send the merchandise within the time promised or, there there was no delivery time stated, 30 days, or offer a refund. The FTC also charged Stephanie Herter, aka Stephanie Branham, because she allowed Hare to cash checks using her account.

Remember, just because you see a description on your screen or get an e-mail from someone does not mean that the item exists or that the seller is on the up-and-up. If you buy based on an ad on the Internet, you are buying something sight-unseen. The FTC has written a new Consumer Alert, "Online Auctions: Going, Going, Gone," with tips for online bidders.

The NFIC/IFW drew attention to problems with Internet auctions in testimony to Congress in February. Also, check out our tips for online shoppers.

For more information about the FTC case, check out the FTC press release.

In you have any questions or would like to report an incident, call NCL's National Fraud Information Center at 1-800-876-7060 or use one of our online forms.

NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not finding or ruling that the defendant has actually violated the law. The case will be decided by the court.

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