Online shoppers risking their cash
Online shopping has surged in popularity over the past 12 months but shoppers are being warned that consumer protections end at the border.
Over the past year the Commerce Commission has received 45 complaints against online electronics retailer Dick Smith.
Customers complained that they didn’t receive their items, were misled about delivery times and struggled to get a refund.
Those who spoke to said they had felt safe ordering from the business because it was a .co. nz website.
In reality, Dick Smith customers were buying from an Australian-based company, owned by Kogan.com, the new owner of Mighty Ape.
So what are shoppers’ rights when it comes to shopping online with international retailers?
Consumer NZ head of research Jessica Wilson said shoppers buying from international traders could not rely on their normal consumer protections under New Zealand law.
Shoppers needed to check who they were dealing with, the retailer’s return policy and look at online reviews, Wilson said.
‘‘You really want to be quite cautious when you are handing over money, that you are dealing with a company that is going to deliver,’’ she said.
Given the growth of online sales, it was time to consider new consumer protections similar to those being enacted in the European Union, Wilson said.
Pay by credit card
Online shoppers should pay by credit card so that if there were unresolved problems, they could seek a refund by applying to the bank for a chargeback on the card.
International rights
If chargeback was not an option, then shoppers would need to look at the consumer laws where the company was based, Wilson said.
Shoppers might find some recourse in the business’s home country, though that could be time-consuming and difficult.
Don’t rely on .co.nz as protection
Although consumers might think they were dealing with a New Zealand-based company when they saw a .co.nz website, that was not necessarily the case, Wilson said.
It was easy to set up a .co.nz website and there was no requirement for the trader to be based in New Zealand.
Retailers using .co.nz were technically supposed to adhere to local consumer laws, but taking action could be difficult if they were not based here.