Info for Consumers
		Privacy
		Advice@American Express
		Tips, Tools &
		Information
		Consumer FAQs

This Week's Article

Advice Archive by Date

Advice Archive by Topic

How to shop safely online

There are two schools of thought about shopping on the Internet.

Some people are nervous about it. They may “window-shop” online. But when it comes to actually placing an order, they're reluctant.

The other group sees it this way: “I shop online all the time, and I don't know how I ever lived without the convenience.”

These are the people driving a dramatic increase in retail sales over the Internet. During First Quarter 1999, revenues were almost two and a half times greater than during the same period last year.

Internet shopping is still only a small percentage of total retail sales, but the trend is definitely up. *

Easy as ABC

Where do you stand on this subject? Maybe you haven't made up your mind because you don't feel you know enough about the whole process. This week's Advice@American Express is designed to give you some basic information and tell you how to find out more.

When exploring online, think “ABC” to remember the privacy and security questions you should ask about a company before you consider a transaction online:

A
About Me? What information does the company collect about me and is it secure?

B
Benefits? How does the company use that information, and what is the benefit to me?

C
Choices? What choices do I have about the company's use of information about me? Can I opt out of having information used for other purposes?

Security on the Internet

Shopping on the Internet can be as safe as shopping in a store or by mail. Keep the following tips in mind to help ensure that your online experience is a safe one:

• Use a secure browser that complies with industry security standards, such as Secure Sockets Layer (SSL).
• Shop with companies you know. If you're not familiar with a merchant, ask for a paper catalog or brochure to get a better idea of their merchandise and services. Also, check the web site to determine the company's refund and return policies before you place your order.
• Keep your password(s) private. Be creative; don't use your phone number, birthdate or a portion of your Social Security number. A random combination of numbers, letters and symbols is better.
• Pay by credit or charge card and your transaction will be protected by the Fair Credit Billing Act. And, in the event of unauthorized use of your card, you generally would be held liable only for the first $50 in charges.
• Keep a record of your purchase order and confirmation number. Online orders are covered by the Mail/Telephone Order Merchandise Rule: your merchandise must be delivered within 30 days; if there are delays, the company must notify you.
• If you pay your bills online, make sure this convenience is accompanied by security procedures that protect your financial and personal information.

Privacy on the Internet

Technology now provides companies with the ability to collect information about you and potentially give or sell that information to others. While the Internet can serve as a tremendous resource for information, products and services, you can help safeguard your privacy online by following these tips:

• Keep your personal information private. If someone asks for your address, telephone and Social Security numbers or E-mail address, you should make sure you know who is collecting information, why they are collecting it, and what they will use it for.
• Look for a company's online privacy policy on its web site. If it isn't there, send an E-mail or written message to the company requesting that they post it.
• Make choices. Many companies allow you to decline having personal information, such as your E-mail address, used for marketing purposes or shared with other companies. Look for this choice as part of the company's privacy policy, usually posted on the web site.

If you want to know more about this subject, consult the list of useful links to consumer information web sites under the heading “For More Information.”

*Source: Research information [from “The State of Online Retailing 2.0”] used with permission of the Boston Consulting Group and Shop.org, the trade association of online retailers, released July 19, 1999. For more information about this study, visit www.shop.org.

September 9, 1999

Copyright (c) 2000 American Express Company. All Rights Reserved. Users of this site agree to be bound by the terms of the American Express Web Site Rules and Regulations. View Web Site Rules and Regulations and trademarks and Privacy Statement of American Express. See Corporate Entities and Important Disclosures for additional information about the American Express entities who offer products and services on americanexpress.com. American Express Brokerage is offered by American Express Financial Advisors Inc., Member NASD and SIPC. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker dealer.