September 2008
Watch that auction!
New York survey finds scams and deceptions widespread
More than one in four New York State residents who have used an online auction have experienced a scam or deceptive practice,
according to the latest ConsumerWebWatch survey of online consumers across New York State.
Among the most common complaints, reported by about 10 percent of users of online auctions (mostly eBay, Amazon.com, and Overstock.com), was not having received the goods on which they bid. The next three most common, at 7 percent each, were goods not arriving in usable condition, not being told a key detail about the item before it arrived, and "bait and switch," that is, being sent an item of lesser value than the one actually won.
About one-fifth of victims of online auction fraud said they would no longer buy certain types of products on auction sites. Among younger respondents (18 to 34), the number was even higher: 31 percent. Among those who had been hooked by some type of auction fraud, 40 percent said they would do more research on sellers before bidding.
Despite the sometimes risky nature of online auctions, 57 percent of those who had used online auctions said they hadn't sought any information about online auction fraud before placing a bid. Only about 12 percent of those who had experienced a scam said they would stop bidding on auction sites altogether.
When confronted with some kind of fraud, more than half in most age groups said they tried to resolve the problem directly with the seller. About 40 percent of victims said they filed a formal complaint with PayPal, the online payment service owned by eBay. More than a quarter left negative feedback for the seller. In general, comparatively few respondents chose to contact law enforcement, a lawyer, or the Federal Trade Commission.
The survey was conducted in May for ConsumerWebWatch by the Consumer Reports National Research Center, which also conducts the annual Consumer Reports State of the Net survey. Respondents were 2,008 residents from across New York State who had used the Internet for more than a year and had owned a computer for more than six months. The sample was representative of New York State residents, but is not nationally representative.
Among the most common complaints, reported by about 10 percent of users of online auctions (mostly eBay, Amazon.com, and Overstock.com), was not having received the goods on which they bid. The next three most common, at 7 percent each, were goods not arriving in usable condition, not being told a key detail about the item before it arrived, and "bait and switch," that is, being sent an item of lesser value than the one actually won.
About one-fifth of victims of online auction fraud said they would no longer buy certain types of products on auction sites. Among younger respondents (18 to 34), the number was even higher: 31 percent. Among those who had been hooked by some type of auction fraud, 40 percent said they would do more research on sellers before bidding.
Despite the sometimes risky nature of online auctions, 57 percent of those who had used online auctions said they hadn't sought any information about online auction fraud before placing a bid. Only about 12 percent of those who had experienced a scam said they would stop bidding on auction sites altogether.
When confronted with some kind of fraud, more than half in most age groups said they tried to resolve the problem directly with the seller. About 40 percent of victims said they filed a formal complaint with PayPal, the online payment service owned by eBay. More than a quarter left negative feedback for the seller. In general, comparatively few respondents chose to contact law enforcement, a lawyer, or the Federal Trade Commission.
The survey was conducted in May for ConsumerWebWatch by the Consumer Reports National Research Center, which also conducts the annual Consumer Reports State of the Net survey. Respondents were 2,008 residents from across New York State who had used the Internet for more than a year and had owned a computer for more than six months. The sample was representative of New York State residents, but is not nationally representative.
Posted: September 2008
