Buyer beware of those shady websites

The shiny new electronic frontier has its share of shady characters, confidence men and games of chance. Although the Internet is a convenient source of information, it's also a great place for unscrupulous traders to hide.

By its very nature, the Internet is a difficult place to find someone who wants to disappear. Therefore, if something goes wrong with an online purchase - the goods never arrive or are defective - it may be difficult to get recourse legally. Legislation has not kept pace with the changes in the Internet and unwary consumers are at risk.

While researching Irish insurance offerings on the Web, Family Money happened on a well-constructed, informative site, which offered users an opportunity to enter their personal details to receive a quote for motor, life and home insurance. The site did not provide information on how these details would be used or retained. It also did not identify who owned the site, where they were based, or how to contact them by phone, fax or provide an address.

A quick call to the IEDR, a centre at UCD which registers all .ie addresses, revealed that under Irish Data Protection Law, they were unable to provide ownership or contact details on the site.

This site in question may be entirely legitimate and the owners may have accidentally overlooked the provision of contact information. At the moment, a consumer choosing to fill in the questionnaire and send it back would be performing the equivalent of sending detailed personal information to a P.O. box number without benefit of a company name, city, town, or even country.

Basically, the site asks browsers for very detailed personal information, without providing even the most basic information on who is requesting the information and for what purpose it will be used. If the website is based outside of Ireland, consumer protection is minimal at best.

The law which dictates that the IEDR may not provide ownership details for sites, the Data Protection Act, also says that a company or individual seeking personal information from anyone must state who they are and outline how the information provided will be used and/or stored.

One of the biggest problems for consumers using the Net is recourse if something goes wrong, says an article in the latest edition of Consumer Choice, the magazine of the Consumers' Association of Ireland. The article outlines the pitfalls for consumers shopping over the Internet and recommends three ways for consumers to protect themselves.

"While people worry about sending credit card details over the Internet, you are more likely to have problems ensuring that you: are dealing with an honest, traceable trader, receive satisfactory goods or services and can obtain redress if there is a problem."

Until the EU directive on Electronic Commerce is completed and becomes law, consumers should keep their wits about them.