Online Shopping: Reading the Fine Print
Terms of Service Agreement
Have you ever scrolled through a Terms of Service (TOS) Agreement online and clicked “I have read and agree”? Nobody enjoys reading the fine print.
But when shopping online, one of the best ways to avoid problems is to be fully informed. There are at least 8 common terms that may be outlined as part of your purchase agreement. Pay attention to these terms before you order, especially for a big-ticket item likes a new computer.
Is there a cancellation policy?
Some merchants charge a “restocking” fee for a cancelled order, or set a time limit.
How about a return policy?
Can items be returned for refund or exchange? Is there a warranty and what are its terms? Is there an additional manufacturer’s warranty? Is the warranty full or limited? Will damaged items be refunded, repaired, or replaced?
Is the shipping and handling a flat fee or a per-item fee? Will your account be charged at the time of order or the time of shipment? If you return an item, who pays the shipping?
Is the product advertised “as is”?
Are there limitations of liability? You might incur significant damages as a result of product failure. Can you receive compensation for those damages, or are you limited to the value of the original product?
Do you have the right to sue?
Many agreements specify that disputes go to arbitration or mediation, usually in the same state where the business (NOT the consumer) is located. Others specify which state law will decide the dispute, and whether or not there is a time limit for lawsuits.
What if the product is damaged?
You need to inspect the shipment as soon as it arrives, and promptly report any damage in detail.
Is the seller complying with the 30-day rule?
FTC rules require shipment within 30 days of the order. If the seller is unable to ship within that time, the buyer must be notified and given the option to cancel the order for a full refund. A merchant who violates that law may be fined up to $16,000.
When shopping online, help yourself avoid unpleasant surprises. Read the fine print.