In modern society, people are no longer finding bargins at the local flea markets; they are finding them online. Not only do online auctions save time and money, it also saves gas! However, just as many good things in life come with caveats, online auctions live up to their end of the bargin.

According to the Internet Fraud Watch, five out of every seven complaints they recieved in 1998 were in regards to online auctions.

There are eight preventative measures one can take when using an online auction:

1. Realiability is key


-Make sure the site is trusted
-Verify the site with a consumer protection information site
-Visit the federal trade commission at www.ftc.gov


2. Get acquainted with the rules of the site


-Know the return policies
-If your product arrives defective, do you get a refund?
-Look for hidden costs
-When purchasing electronics, look for warranties
-Get an e-mail address from the seller that is not "free" (i.e. googlemail)
-Also obtain offline information as e-mail addresses are volitile


3. Deal with reliable sellers


-How do you know they are reliable? You don't. Do your homework
-Check their offline addresses with switchboard.com to see if there is a match
-Check the reviews with a grain of salt
-Don't depend on the auction site to take care of you!


4. Bidding is serious!


-Bidding is irreversable; so, think before you click
-Know the payment options before you bid


5. If it's too good to be true; it is


-Just because an auctioneer claims to have a one-of-a-kind, does not signify the truth
-Be wary of anything that sounds like a scam; it probably is


6. Uncle Sam is watching you!


-Buying illegal merchandise online is just as punishable as anywhere else and can also be traced easier.


7. Payments without worry


-Paypal provides the customer with $2,000 protection on eBay transactions
-eBay provides the customer with $200 protection
-The Internet Fraud watch calimed in 1998 that the average transaction loss was $211


8. Gambling is a disease.


-Watch out for "auctionitis" (competitive, irrational bidding)
-set limits on the bid
-compare prices