Holiday Shopping? How To Be On Guard When You’re Online

Thinking about shopping for the holidays? It’s no secret that browsing and buying online can save you time, money, and effort. The Federal Trade Commission (FTC), the nation’s consumer protection agency, says shoppers who stop and think before they click can prevent an online Scrooge from interfering with their purchases and ultimately, their holiday fun.

The FTC and the technology industry recently launched OnguardOnline, a campaign to help consumers integrate online safety into their daily online routines. The agency says that consumers who take a few precautions when they’re online can help minimize the chances of a mishap. Among the tips from OnGuardOnline.gov are:

• Know who you’re dealing with. Anyone can set up shop online. Confirm an online seller’s physical address and phone number in case you need to get in touch with them. If you get an email or pop-up message from the seller while you’re browsing that asks for financial information, don’t reply or click on the link in the message. Legitimate companies don’t ask for this information via email or pop-ups.
• Read between the lines. Read the seller’s description of the product closely, especially the fine print. Words like “refurbished,” “vintage,” or “close-out” may indicate that the product is in less-than-mint condition; name-brand items with “too good to be true” prices could be counterfeits.
• Calculate the costs. Check out websites that offer price comparisons and then, compare “apples to apples.” Factor shipping and handling into the total cost of the order. Then, stack these costs against your budget and needs.
• Pay by credit or charge card. Do not send cash under any circumstances. If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating. In the event your credit or charge card is used without your knowledge and permission, you generally are liable for no more than $50 in charges per card. Many companies do not hold consumers responsible for any unauthorized charges made online, and some card issuers may provide additional warranty, return, and/or purchase protection benefits.
• Check out the terms of the deal, like refund policies and delivery dates. Can you return the item for a full refund? If you return it, who pays the shipping costs or rest/http://www.fda.gov/ocking fees? Check on when you can expect to receive your order. The law requires sellers to ship items as promised or within 30 days after the order date if no specific date is promised. Can the recipient return your gift? If so, ask that a gift receipt be included in the package.
• Keep a paper trail. Print and save records of your online transactions, including the product description and price, the online receipt, and copies of any email you exchange with the seller. Read your credit card statements as you receive them to be on the lookout for unauthorized charges.
• Don’t email your financial information. Email is not a secure method of transmitting financial or personal information like your credit card, checking account, or S/http://www.fda.gov/ocial Security number. If you begin a transaction and want to provide your financial information through an organization’s website, look for indicators that the site is secure, like a l/http://www.fda.gov/ock icon on the browser’s status bar or a URL for a website that begins “https:” (the “s” stands for “secure”). Unfortunately, no indicator is foolproof; some fraudulent sites have forged security icons.
• Use anti-virus software and a firewall and update them regularly. Anti-virus software protects your computer from viruses that can destroy your data, slow your computer’s performance, cause a crash, or even allow spammers to send email through your account. It scans your computer and incoming email for viruses, deleting them. Your anti-virus software should update routinely with antidotes to the latest “bugs” circulating through the Internet. Firewalls help keep hackers from using your computer to send out your personal information without your permission. Think of a firewall as a guard, watching for outside attempts to access your system and bl/http://www.fda.gov/ocking communications to and from sources you don’t permit. If your operating system doesn’t include a firewall, get a separate software firewall, or install a hardware firewall — an external device that includes firewall software.
• Check a company’s privacy policy before doing business. It should let you know what personal information the website operators are collecting, why, and how they’re going to use it. If you can’t find a privacy policy — or if you can’t understand it — consider taking your business to another site that’s more security-conscious and customer-friendly.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Check Overpayment Scams: Seller Beware

Thinking of selling a car or another valuable item through an online auction or your newspaper’s classified section? If so, the Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know about check overpayment scams.

According to FTC officials, the scams work like this: Someone responds to your posting or ad, and offers to use a cashier’s check, personal check or corporate check to pay for the item you’re selling. At the last minute, the so-called buyer (or the buyer’s “agent”) comes up with a reason for writing the check for more than the purchase price, and asks you to wire back the difference after you deposit the check. You deposit the check and wire the funds back to the “buyers.” Later, the check bounces, leaving you liable for the entire amount.

The checks are counterfeit, says the FTC, but good enough to fool unsuspecting bank tellers.

In a different version of the scam, the FTC says, consumers get a check that has their “winnings” from a lottery. They’re asked to pay taxes or fees. Sometimes, the sender claims to be trapped in a foreign country without any way to cash the check. Either way, federal officials say, if you deposit the check, you’ll lose.

Here’s how to avoid a check overpayment scam:

• Know who you’re dealing with. In any transaction, independently confirm the buyer’s name, street address, and telephone number.
• Don’t accept a check for more than your selling price, no matter how tempting. Ask the buyer to write the check for the correct amount. If the buyer refuses to send the correct amount, return the check. Don’t send the merchandise.
• Consider an alternative method of payment. As a seller, you can suggest an escrow service or online payment service. There may be a charge for an escrow service. If the buyer insists on using a particular escrow or online payment service you’ve never heard of, check it out. Visit its website, and read its terms of agreement and privacy policy. Call the customer service line. If there isn’t one or if you call and can’t get answers about the service’s reliability, don’t use the service. To learn more about escrow services and online payment systems, visit www.ftc.gov/onlineshopping.
• If you accept payment by check, ask for a check drawn on a l/http://www.fda.gov/ocal bank, or a bank with a l/http://www.fda.gov/ocal branch. That way, you can make a personal visit to make sure the check is valid. If that’s not possible, call the bank where it was purchased and ask if the check is valid. Get the bank’s phone number from directory assistance or an Internet site that you know and trust, not from the person who gave you the check.
• If the buyer insists that you wire back funds, end the transaction immediately. Legitimate buyers don’t pressure you to send money by Western Union or a similar company. In addition, you have little recourse if there’s a problem with a wire transaction.
• Resist any pressure to “act now.” If the buyer’s offer is good now, it should be good after the check clears the issuing bank.
• Throw away any offer that asks you to pay for a prize or a gift. If it’s free or a gift, you shouldn’t have to pay for it. Free is free.
• Resist the urge to enter foreign lotteries. Most foreign lottery solicitations are phony. What’s more, it’s illegal to play a foreign lottery through the mail or the telephone.

If you think you’ve been targeted by a check overpayment scam, file a complaint with the Federal Trade Commission at www.ftc.gov or by calling 1-877-FTC-HELP (1-877-382-4357). For more information on buying or selling via an Internet auction site, visit www.ftc.gov/onlineshopping.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Internet Auctions: Secrets of Success

Whether you're looking for a collectible or thinking about selling that treasure you discovered in the attic, an Internet auction may be just the thing for you. Since their first appearance in 1995, Internet auctions have become one of the hottest phenomena of the web.

Yet despite their growing popularity among buyers as well as sellers, many people don't understand fully how Internet auctions work, the different kinds of auctions available and - perhaps most importantly - how to take part in them without being ripped off.

Internet auction fraud is on the rise, with an increasing number of consumers complaining about sellers who deliver their advertised goods late or not at all, or deliver something far less valuable than promised. To help make Internet auction transactions as smooth and successful as possible for everyone involved, the Federal Trade Commission offers these tips:

A new Federal Trade Commission publication, " Internet Auctions: A Guide for Buyers and Sellers," offers more information about Internet auctions.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Going Shopping? Go Global!A Guide for E-Consumers.

Shopping online opens up a whole world of goods and services. With the simple click of a computer mouse, you can order tulip bulbs directly from Holland, exotic spices from Turkey or handwoven wall hangings from Mexico or Mor/http://www.fda.gov/occo.

The World Wide Web has expanded the international marketplace in a way never before possible, giving consumers unlimited choices.

But shopping electronically-especially when you're dealing with vendors in other countries-opens up a whole world of questions. Are the prices posted in U.S. dollars or some other currency? Does the company ship internationally? How long will it take for an order to be delivered? Will unexpected taxes or duties be added to the price? If there's a problem, where can you get it resolved?

The Federal Trade Commission offers these tips to help you when you "go global":

• Know who you're dealing with.
  Do some homework to make sure a company is legitimate before doing business with it. Identify the company's name, its physical address, including the country where it is based, and an e-mail address or telephone number, so you can contact the company with questions or problems. And consider dealing only with vendors that clearly state their policies. Is the company affiliated with industry groups, seal programs or other self-regulatory programs you trust?
• Know what you're buying.
  Look for accurate, clear and easily accessible information about the goods or services being offered, and contact the company to clear up any questions before you place an order.
• Understand the terms, conditions and costs involved in the sale.
  Find out up front what you're getting for your money-and what you're not. Get a full, itemized list of costs involved in the sale, with a clear designation of the currency involved, terms of delivery or performance, and terms, conditions and methods of payment.
  
  Look for information about restrictions, limitations or conditions of the purchase; instructions for proper use of products, including safety and health care warnings; warranties and guarantees; cancellation, return,or refund policies; and the availability of after-sale service.
• Protect yourself when paying online.
  Look for information posted online that describes the company's security policies, and check whether the browser is secure and encrypts your personal and financial information during online transmission. That makes the information less vulnerable to hackers.
• Look out for your privacy.
  All businesses require information about you to pr/http://www.fda.gov/ocess an order. Some use it to tell customers about products, services or promotions, but others share or sell the information to other vendors-a practice with which you may not be comfortable.
  
  Shop only from online vendors that respect your privacy. Look for the vendor's privacy policy on the web site. The policy statement should reveal what personal identifying information is collected about you and how it will be used, and give you the opportunity to refuse having your information sold or shared with other vendors. It also should tell you whether you can correct or delete information the company already has about you.
• Understand what recourse you have if you run into problems with your purchase.
  Do business only with companies that state their commitment to customer satisfaction and their policy to resolve consumer complaints or difficulties quickly and fairly, without imposing excessive charges or inconvenience.
• Get smart about e-commerce. Demand consumer-friendly policies and pr/http://www.fda.gov/ocedures.
  Look for information from businesses, consumer representatives and governments about your rights and responsibilities when you participate in international electronic commerce. Take an active role in advancing an electronic marketplace that promotes fair and effective policies and pr/http://www.fda.gov/ocedures that protect businesses as well as consumers.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

A Consumer's Guide to E-Payments

The Internet has taken its place beside the telephone and television as an important part of people’s lives. Consumers use the Internet to shop, bank and invest online. Most consumers use credit or debit cards to pay for online purchases, but other payment methods, like “e-wallets,” are becoming more common.

The Federal Trade Commission (FTC) wants you to know about these payment technologies and how to make your transactions as safe and secure as possible. Keep these tips in mind as other forms of electronic commerce, like mobile and wireless transactions, become more available.

AND HOW WOULD YOU LIKE TO PAY?

Most online shoppers use credit cards to pay for their online purchases. But debit cards — which authorize merchants to debit your bank account electronically — are increasing in use. Your debit card may be an automated teller machine (ATM) card that can be used for retail purchases. To complete a debit card transaction, you may have to use a personal identification number (PIN), some form of a signature or other identification, or a combination of these identifiers. Some cards have both credit and debit features: You select the payment option at the point-of-sale. But remember, although a debit card may look like a credit card, the money for debit purchases is transferred almost immediately from your bank account to the merchant’s account. In addition, your liability limits for a lost or stolen debit card and unauthorized use are different from your liability if your credit card is lost, stolen or used without your authorization.

Other electronic payment systems — sometimes referred to as “electronic money” or “e-money” — also are now common. Their goal is to make purchasing simpler. For example, “stored-value” cards let you transfer cash value to a card. They’re commonly used on public transportation, at colleges and universities, at gas stations, and for prepaid telephone use. Many retailers also sell stored-value cards in place of gift certificates. Some stored-value cards work offline, say, to buy a candy bar at a vending machine; others work online, for example, to buy an item from a website; some have both offline and online features. Some cards can be “reloaded” with additional value, at a cash machine; other cards are “disposable” — you throw them away after you use all their value. Some stored-value cards contain computer chips that make them “smart” cards: These cards may act like a credit card as well as a debit card, and also may contain stored value.

Some Internet-based payment systems allow value to be transmitted through computers, sometimes called “e-wallets.” You can use “e-wallets” to make “micropayments” — very small online or offline payments for things like a magazine or fast food. When you buy something using your e-wallet, the balance on your online account decreases by that amount. “E-wallets” may work by using some form of stored value or by automatically accessing an account you’ve set up through a computer system connected to your credit or debit card account.

“PAYING” IT SAFE

The FTC encourages you to take steps to make sure your transactions are secure and your personal information is protected. Although you can’t control fraud or deception on the Internet, you can take action to recognize it, avoid it and report it. Here’s how.

• Use a secure browser — software that encrypts or scrambles the purchase information you send over the Internet — to help guard the security of your information as it is transmitted to a website. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer. You also can download some browsers for free over the Internet. When submitting your purchase information, look for the “l/http://www.fda.gov/ock” icon on the browser’s status bar, and the phrase “https” in the URL address for a website, to be sure your information is secure during transmission.
• Check the site’s privacy policy, before you provide any personal financial information to a website. In particular, determine how the information will be used or shared with others. Also check the site’s statements about the security provided for your information. Some websites’ disclosures are easier to find than others — look at the bottom of the home page, on order forms or in the “About” or “FAQs” section of a site. If you’re not comfortable with the policy, consider doing business elsewhere.
• Read and understand the refund and shipping policies of a website you visit, before you make your purchase. Look closely at disclosures about the website’s refund and shipping policies. Again, search through the website for these disclosures.
• Keep your personal information private. Don’t disclose your personal information — your address, telephone number, S/http://www.fda.gov/ocial Security number, bank account number or e-mail address — unless you know who’s collecting the information, why they’re collecting it and how they’ll use it.
• Give payment information only to businesses you know and trust, and only when and where it is appropriate — like an order form. Never give your password to anyone online, even your Internet service provider. Do not download files sent to you by strangers or click on hyperlinks from people you don’t know. Opening a file could expose your system to a computer virus or a program that could hijack your modem.
• Keep records of your online transactions and check your e-mail for contacts by merchants with whom you’re doing business. Merchants may send you important information about your purchases.
• Review your monthly credit card and bank statements for any errors or unauthorized purchases promptly and thoroughly. Notify your credit or debit card issuer immediately if your credit or debit card or checkbook is lost or stolen, or if you suspect someone is using your accounts without your permission.

REPORT PROBLEMS IMMEDIATELY

The Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA) establish protections against lost or stolen credit or debit cards, and pr/http://www.fda.gov/ocedures for resolving errors on credit and bank account statements that can include:

• credit charges or electronic fund transfers that you — or anyone you’ve authorized to use your account — have not made;
• credit charges or electronic fund transfers that are incorrectly identified or show the wrong amount or date;
• computation or similar errors;
• a failure to properly reflect payments or credits, or electronic fund transfers;
• not mailing or delivering credit billing statements to your current address, as long as that address was received by the creditor in writing at least 20 days before the billing period ended; and
• credit charges or electronic fund transfers for which you request an explanation or d/http://www.fda.gov/ocumentation, because of a possible error.

For credit: The FCBA generally applies to “open end” credit accounts — that is, credit cards and revolving charge accounts, like department store accounts. It does not apply to loans or credit sales that are paid according to a fixed schedule until the entire amount is paid back, like an automobile loan.

Lost or stolen credit cards: Under the FCBA, your liability for lost or stolen credit cards is limited to $50. If the loss involves only your credit card number (not the card itself), you have no liability for unauthorized use. It’s best to notify your card issuer promptly upon discovering the loss. Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Always follow up with a letter and keep a copy for your records.

Billing errors: The FCBA’s settlement pr/http://www.fda.gov/ocedures apply to disputes about “billing errors” for open-end accounts, including unauthorized charges (you cannot be liable for more than $50 for unauthorized credit charges); charges for goods or services you didn’t accept or weren’t delivered as agreed; charges that are incorrectly identified or show the wrong amount or date; math errors; a failure to properly reflect payments or credits; not mailing or delivering credit billing statements to your current address, if the address was received by the creditor in writing at least 20 days before the billing period ended; and charges for which you request an explanation or d/http://www.fda.gov/ocumentation, because of a possible error.

To take advantage of the FCBA’s consumer protections for errors on your account, write to the creditor at the address given for “billing inquiries,” not the address for sending your payments. Include your name, address, account number and a description of the billing error. Send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you. And if you send your letter by certified mail, return receipt requested, you’ll have proof that the creditor received it. Include copies (not originals) of sales slips or other d/http://www.fda.gov/ocuments that support your position. Keep a copy of your dispute letter.

The creditor must acknowledge your dispute in writing within 30 days after it is received, unless the problem is resolved within that period. The creditor must con-duct an investigation and either correct the mistake or explain why the bill is believed to be correct, within two billing cycles (but not more than 90 days), unless the creditor provides a permanent credit instead. You may withhold payment of the amount in dispute and any related finance charges and the creditor may not take any action to collect that amount during the dispute.

For debit: The EFTA applies to electronic fund transfers — transactions involving automated teller machines (ATMs), debit cards and other point-of-sale debit transactions, and other electronic banking transactions that can result in the withdrawal of cash from your bank account.

Lost or stolen debit cards: If someone uses your debit card, or makes other electronic fund transfers, without your permission, you can lose from $50 to $500 or more, depending on when you report the loss or theft. If you report the loss within two business days after you discover the problem, you will not be responsible for more than $50 for unauthorized use. However, if you do not report the loss within two business days after you realize the card is missing, but you do report its loss within 60 days after your statement is mailed to you, you could lose as much as $500 because of an unauthorized withdrawal. And, if you do not report an unauthorized transfer or withdrawal within 60 days after your statement is mailed to you, you risk unlimited loss. That means you could lose all the money in your account and the unused portion of your maximum line of credit established for overdrafts.

Some financial institutions may voluntarily cap your liability at $50 for certain types of transactions, regardless of when you report the loss or theft; because this is voluntary, their policies could change at any time. Ask your financial institution about its liability limits.

EFT errors: The EFTA’s error pr/http://www.fda.gov/ocedures apply to certain problems. This can include:

• electronic fund transfers that you — or anyone you’ve authorized to use your account — have not made;
• incorrect electronic fund transfers;
• omitted electronic fund transfers;
• a failure to properly reflect electronic fund transfers; and
• electronic fund transfers for which you request an explanation or d/http://www.fda.gov/ocumentation, because of a possible error.

To take advantage of the EFTA’s error resolution pr/http://www.fda.gov/ocedures, you must notify your financial institution of the problem not later than 60 days after the statement containing the problem or error was sent. Although most financial institutions have a toll-free number to report the problem, you should follow-up in writing. For retail purchases, your financial institution has up to 10 business days to investigate after receiving your notice of the error. The financial institution must tell you the results of its investigation within three business days of completing its investigation. The error must be corrected within one business day after determining the error has /http://www.fda.gov/occurred. If the institution needs more time, it may take up to 90 days, in many situations, to complete the investigation — but only if it returns the money in dispute to your account within 10 business days after receiving notice of the error, while it reviews your concerns.

For stored-value: The FCBA and the EFTA may not cover stored-value cards or transactions involving them, so you may not be covered for loss or misuse of the card. However, stored-value cards still might be useful for micropayments and other small purchases online because they can be convenient and — in some cases — offer anonymity. Before you buy a stored-value card or other form of e-money, ask the issuer for written information about the product’s features. Find out the card’s dollar limit, whether it is reloadable or disposable, if there’s an expiration date, and any fees to use, reload or redeem (return it for a refund) the product. At the same time, ask about your rights and responsibilities. For example, does the issuer offer any protection in the case of a lost, stolen, misused, or malfunctioning card, and who do you call if you have a question or problem with the card?

FOR MORE INFORMATION

Your financial institution, l/http://www.fda.gov/ocal consumer protection agency and law enforcement agencies like the Federal Trade Commission or your state Attorney General are among the many organizations working to help consumers understand electronic commerce and new online payment options.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Billed for Merchandise You Never Received?
Here's What To Do.

You found the perfect set of linens in a mail order catalog. You call to place your order and charge it to your credit card. You're told that your linens should arrive in two weeks. Two weeks go by, then three and four, and still no linens. What you do get is your credit card bill with a charge from the catalog company.

So, just what do you do when you get a credit card bill but no merchandise? Get frustrated, to be sure.

But the error can be corrected. The Fair Credit Billing Act (FCBA) and the Mail or Telephone Order Merchandise Rule offer protections and pr/http://www.fda.gov/ocedures for consumers so they don't have to pay for merchandise they ordered but never received.

In addition, many credit card issuers have policies against merchants charging a credit card account before shipment. If you think a merchant charged your account prematurely, report it to the credit card issuer. Otherwise, the credit card issuer has no way to know that the merchant is not complying with its policies.

The Fair Credit Billing Act
To dispute a billing error on your credit card, you must:

• Write to the credit card issuer at the address for "billing inquiries," not the address for sending your payments (the address for billing inquiries is often found on the back of your most recent monthly statement); include your name, address, account number and a description of the billing error. A sample letter is included on page 3.
• Send your letter so that it reaches the credit card issuer within 60 days after the first bill containing the error was mailed to you.
• Send your letter by certified mail, return receipt requested, so you have proof of what the credit card issuer received. Include copies (not originals) of sales slips or other d/http://www.fda.gov/ocuments that support your position. Keep a copy of your dispute letter.
• It is important to send the letter to the correct company. In the case of Visa and MasterCard, you should send it to the bank that issued the card.

The credit card issuer must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has already been resolved. And the credit card issuer must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

What happens while your bill is in dispute?
You may withhold payment on the disputed amount (and related charges), during the investigation, but you must pay any part of the bill not in question, including any finance charges on the undisputed amount.

The credit card issuer may not take any legal or other action to collect the disputed amount and the related charges (including finance charges) during the investigation. While your account cannot be closed or restricted, the disputed amount may be applied against your credit limit.

You placed an order with a catalog company and they charged your credit card immediately. The catalog company contacts you two weeks later and says the shipment will be delayed 60 days. You agree to the delay. The 60 days have passed and you don't have the merchandise. Can you still dispute the charge?

Maybe. In delayed shipment situations, credit card issuers often are more generous when they calculate the time for allowing disputes. To take advantage of this flexibility, include the following information in your dispute letter.

• Tell the credit card issuer if the premature charge was unexpected. Some credit card issuers make an exception to the general industry rule against merchants charging before shipping if the merchant tells you about its practice at the time of sale. If you're certain the merchant said nothing or wasn't clear about its charge practice, the credit card issuer is more likely to allow the dispute.
• Tell the credit card issuer when delivery was expected. In no delivery situations, some credit card issuers will use the expected date of delivery rather than the charge date as the start time for you to dispute charges. If you dispute the charge within a reasonable time after the expected delivery date passes, chances are good that the credit card issuer will honor the dispute. When you order or when a merchant notifies you of delayed shipment, it's important to keep a record of the promised shipment or delivery date. Include a copy of any d/http://www.fda.gov/ocumentation of the shipment or delivery date when disputing the charge with your credit card issuer.

What if you used a debit card to pay for the merchandise? The consumer protections for a debit card fall under the Electronic Fund Transfer Act and may differ from protections for a credit card under the FCBA. So you may not be able to dispute a debit and get a refund for nondelivery or late delivery. Still, some debit card issuers voluntarily offer protections and solutions to problems like the failure to receive merchandise bought with a debit card. Contact your debit card issuer for more information about particular policies and protections.

What if you financed your purchase through the merchant? If you financed your purchase through the merchant, you also may have protections under state and federal law. Check your credit contract for the following language: Notice: Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained with the pr/http://www.fda.gov/oceeds hereof. It means that you may be able to claim that the seller failed to deliver the goods as stated in your credit contract.

Sample Dispute Letter

The Mail or Telephone Order Merchandise Rule
This rule covers merchandise you order by mail, telephone, computer and fax. It requires merchants to have a reasonable basis for claiming they can ship an order within a certain time.

Ship Dates

• By law, a merchant should ship your order within the time stated in its ads or over the phone. If the merchant doesn't promise a time, you can expect it to ship your order within 30 days.
• The shipment "cl/http://www.fda.gov/ock" begins when the merchant receives a "properly completed order." That includes your name, address and payment (check, money order or authorization to charge an existing credit account - whether the account is debited at that time or not).
• If the merchant doesn't promise a shipping time and you are applying for credit to pay for your purchase, the merchant has an additional 20 days (50 days total) to establish the account and ship the merchandise.

Delays
If the merchant is unable to ship within the promised time, it must notify you by mail, telephone, or email, give a revised shipping date and give you the chance to cancel for a full refund or accept the new shipping date. The merchant also must give you some way to exercise the cancellation option for free, for example, by supplying a prepaid reply card or staffing a toll-free telephone number.

• If you ignore the option notice, and the delay is 30 days or less, it's assumed that you accept the delay and are willing to wait for the merchandise.
• If you do not respond - and the delay is more than 30 days - the order must be canceled by the 30th day of the delay period and a full refund issued promptly.

If the merchant can't meet the revised shipping date, it must notify you again by mail, email or telephone and give you a new shipping date or cancel your order and give you a refund.

• The order will be canceled and a refund issued promptly unless you indicate by the revised shipping date that you are willing to wait.
• If you do not respond at all to the second notice, it's assumed that you are not willing to wait, and a full refund must be issued promptly.

Refunds
If you authorized a charge to your credit card account, the merchant must credit the account within one billing cycle - not give credit toward another purchase. If you pay by cash, check or money order, the merchant must mail you a refund within seven working days.

Tips for Shopping by Phone, Mail or Online

• Consider your experience with the company or its general reputation before you order. If you've never heard of the seller, check on its physical l/http://www.fda.gov/ocation and reputation with the l/http://www.fda.gov/ocal Better Business Bureau or the state Attorney General's office.
• Ask about the company's refund and return policies , the product's availability and the total cost of your order before you place your order.
• Get a shipment date.
• Keep records of your order , such as the ad or catalog from which you ordered; the company's name, address and phone number; any shipment representation the company made to you and when it made it; the date of your order; a copy of the order form you sent to the company or, if you're ordering by phone, a list of the items and their st/http://www.fda.gov/ock codes and the order confirmation code; your canceled check or the charge or debit statement showing the charge for your order; and any communications to or from the company.
• Track your purchases. When you order online, keep printouts of the web pages with the details of the transaction, including the merchant's return policies, in case you're not satisfied.

Contacts for Resolving Problems

If you have other problems with your purchase, try to resolve your dispute with the company. If that doesn't work, the following resources may be helpful:

• State and l/http://www.fda.gov/ocal consumer protection offices. Contact the offices in your home state and where the company is l/http://www.fda.gov/ocated.
• The Direct Marketing Ass/http://www.fda.gov/ociation (DMA). Write:

DMA Mail Order Action Line
1111 19th Street, N.W., Suite 1100
Washington, D.C. 20036-3603

• Postal Inspectors. Call your l/http://www.fda.gov/ocal post office and ask for the Inspector-in-Charge.

Getting More Information

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

How to Right a Wrong

Most companies want to make you happy so you’ll come back and recommend them to your friends. But when you find a company that’s not making the grade, how do you resolve the problem?

This br/http://www.fda.gov/ochure explains your rights when it comes to mail and telephone order shopping, unordered merchandise, and door-to-door sales. It also tells you how to write an effective complaint letter and lists some resources for additional help.

Mail and Telephone Order Sales
Shopping by phone or mail can be a convenient alternative to shopping at a store. But if your merchandise arrives late or not at all, you have some rights.

By law, a company should ship your order within the time stated in its ads. If no time is promised, the company should ship your order within 30 days after receiving it.

If the company is unable to ship within the promised time, they must give you an “option notice.” This notice gives you the choice of agreeing to the delay or canceling your order and receiving a prompt refund.

There is one exception to the 30-day rule. If a company doesn’t promise a shipping time, and you’re applying for credit to pay for your purchase, the company has 50 days to ship after receiving your order.

Fair Credit Billing Act (FCBA)
You’re protected by the FCBA when you use your credit card to pay for purchases.

Billing Errors
If you find an error on your credit or charge card statement, you can dispute the charge and withhold payment on the challenged amount while the charge is in dispute. The error might be a charge for the wrong amount, for something you did not accept, or for an item that was not delivered as agreed. Of course, you still must pay any part of the bill that isn’t in dispute, including the finance charges on the undisputed amount.

If you decide to dispute a charge:

• write to the creditor at the address indicated on the monthly statement for “billing inquiries.” Include your name, address, credit card number, and a description of the billing error.
• send your letter in a timely fashion. It must reach the creditor within 60 days after the first bill containing the error was mailed to you.
• the creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving the letter.

Unsatisfactory Goods or Services
You also may dispute charges for unsatisfactory goods or services. To take advantage of this protection, you must:

• have made the purchase in your home state or within 100 miles of your current billing address. The charge must be for more than $50;
• make a good faith effort first to resolve the dispute with the seller. However, you are not required to use any special pr/http://www.fda.gov/ocedure to do so.

Note that the dollar and distance limitations don’t apply if the seller is the card issuer or if a special business relationship exists between the seller and the card issuer.

Unordered Merchandise
If you receive merchandise you didn’t order, federal law says you can consider it a gift. You can’t be forced to pay for the item or return it.

If you decide to keep the merchandise, you may want to send the seller a letter stating your intention, even though you’re not legally obligated to do so. Your letter may discourage the seller from sending you repeated bills, or it may clear up an error. It’s a good idea to send the letter by certified mail and keep the return receipt and a copy of the letter. These records will help you establish later, if necessary, that you didn’t order the merchandise.

Two types of merchandise may be sent legally without your consent: free samples that are clearly marked as such; and merchandise mailed by charities asking for contributions. In either case, you may keep the shipments.

Door-to-Door Sales
Shopping at home can be convenient and enjoyable. But there may be times when you change your mind about an in-home purchase.

The FTC’s Cooling-Off Rule gives you three days to cancel purchases of $25 or more made at your home, workplace or dormitory, or at facilities rented by the seller on a temporary short-term basis, such as hotel or motel rooms, convention centers, fairgrounds, and restaurants.

Some Exceptions
Some types of sales can’t be canceled even if they /http://www.fda.gov/occur in l/http://www.fda.gov/ocations normally covered by the Rule. The Rule does not cover sales that:

• are under $25;
• are for goods or services not primarily intended for personal, family, or household use. The Rule applies to courses of instruction or training;
• are made entirely by mail or telephone;
• are the result of prior negotiations at the seller’s permanent l/http://www.fda.gov/ocation where the goods are sold regularly;
• are needed to meet an emergency. Suppose insects suddenly invade your home, and you waive your right to cancel the contract;
• are made as part of your request for the seller to do repairs or maintenance on your personal property (purchases made beyond the maintenance or repair request are covered).

Also exempt from the Rule are sales that involve:

• real estate, insurance, or securities;
• automobiles, vans, trucks, or other motor vehicles sold at temporary l/http://www.fda.gov/ocations, provided the seller has at least one permanent place of business;
• arts and crafts sold at fairs or l/http://www.fda.gov/ocations such as shopping malls, civic centers, and schools.

Under the Rule, the salesperson must tell you about your cancellation rights at the time of sale. The salesperson also must give you two copies of a cancellation form (one to keep and one to send back) and a copy of your contract or receipt. The contract or receipt should be dated, show the name and address of the seller, and explain your right to cancel. The contract or receipt must be in the same language that’s used in the sales presentation.

How to Cancel a Door-to-Door Sale
To cancel a sale, sign and date one copy of the cancellation form. You don’t have to give a reason for canceling the purchase. Mail it to the address given for cancellations, making sure the envelope is post-marked before midnight of the third business day after the contract date. (Saturday is considered a business day; Sundays and federal holidays are not.) Because proof of the mailing date and receipt are important, consider sending the cancellation form by certified mail so you can get a return receipt. Keep the other copy of the cancellation form for your records. If the seller did not provide cancellation forms, write your own cancellation letter.

If You Cancel
If you cancel your purchase, the seller has 10 days to:

• cancel and return any promissory notes or other negotiable instruments you signed;
• refund all your money and tell you whether any product left with you will be picked up; and
• return any trade-in.

Within 20 days, the seller either must pick up the items left with you, or reimburse you for mailing expenses, if you agreed to send back the items. If you received any goods from the seller, you must make them available to the seller in as good condition as when you received them. If you don’t make the items available—or if you agree to return the items but don’t—you remain obligated under the contract.

Problems
Try to resolve your dispute with the seller first. Make sure you act quickly. Some companies may not accept responsibility if you fail to complain within a certain period of time.

Send a letter of complaint. A letter is important because it puts your complaint on record and lets the company know you are serious about pursuing the dispute. An effective complaint letter may look something like the sample on the next page. Be sure you keep a copy for your records.

If you can’t get satisfaction, consider contacting the following organizations for further information and assistance.

• State and l/http://www.fda.gov/ocal consumer protection offices.
• Your l/http://www.fda.gov/ocal Better Business Bureau (BBB).
• Action line and consumer reporters. Check with your l/http://www.fda.gov/ocal newspaper, TV, and radio stations for a contact.
• Postal Inspectors. Call your l/http://www.fda.gov/ocal U.S. Post Office and ask for the Inspector-in-Charge.
• The Federal Trade Commission. To file a complaint, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (382-4357);
  TTY: 1-866-653-4261. Although the FTC does not intervene in individual disputes, the information you provide may indicate a pattern of possible law violations requiring action by the Commission.
• Mail/telephone orders only. Write: Direct Marketing Ass/http://www.fda.gov/ociation (DMA), 1111 19th Street, NW , Washington , DC 20036 .
• Door-to-Door sales only. The Direct Selling Ass/http://www.fda.gov/ociation (DSA) can help you with your complaint if the door-to-door seller is a member. Write: Direct Selling Ass/http://www.fda.gov/ociation, 1275 Pennsylvania Ave, NW , Washington , DC 20004 .

Dispute Resolution Programs
You also may want to consider dispute resolution programs. A popular way to settle disagreements, a dispute resolution program can be quicker, less expensive, more private, and less stressful than going to court. Many businesses, private organizations, and public agencies offer these programs. Two resolution techniques are mediation and arbitration.

Through mediation, you and the other party try to resolve the dispute with the help of a neutral third party—a mediator. In the course of informal meetings, the mediator tries to help resolve your differences. The mediator doesn’t make a decision; it’s up to you and the other party to reach an agreement. The mediator is there to help you find a solution.

In arbitration, you present your case before an arbitrator, who makes a decision. Arbitration is less formal than court, though you and the other party may appear at hearings, present evidence, or call and question each other’s witnesses. The decision may be binding and legally enforceable in court.

Contact the following organizations for dispute resolution options in your area: l/http://www.fda.gov/ocal and state consumer protection offices, small claims courts, BBBs, and bar ass/http://www.fda.gov/ociations.

SAMPLE COMPLAINT LETTER

For More Information
If you’re not sure what federal agency has jurisdiction over your inquiry or complaint, contact the Federal Citizen Information Center’s (FCIC) National Contact Center at 1-800-FED-INFO (333-4636) Monday through Friday 8:00 a.m. to 8:00 p.m. eastern time.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Solving Consumer Problems

No doubt you've purchased a product or service that you weren't happy with. Rather than accepting the situation, take action. After all, businesses want to keep you happy so you'll keep coming back. The Federal Trade Commission suggests these simple strategies for resolving a problem you may have with a product or service.

Where to Start
Contact the seller. Keep a record of your conversations — who you spoke with and when, and the action promised. If you can't resolve the problem at this level, contact the company headquarters. In some instances, you may have to contact the manufacturer. Many companies have a toll-free telephone number. Look for it on package labeling, or call 1-800-555-1212 for toll-free directory assistance. Management may be grateful for your input; it can help identify problems that are bad for business.

Write a Letter
An effective complaint letter should be clear and concise, and include all the facts. Include copies — not originals — of d/http://www.fda.gov/ocuments regarding your complaint, such as sales receipts, repair orders, warranties, cancelled checks, contracts, and any correspondence with the company. See the sample letter below.

You may want to send your letter by certified mail, return receipt requested. The extra money this costs pays for your proof that the company got your letter and who signed for it.

And If That Doesn't Work
If your letter doesn't do the trick, contact the following organizations for help:

State and L/http://www.fda.gov/ocal Organizations

Check your telephone directory for the complete names, addresses, and phone numbers of these offices:

• Your state attorney general usually has a division that deals with consumer protection issues;
• Your l/http://www.fda.gov/ocal consumer protection office;
• The Better Business Bureau in your state and where the company is l/http://www.fda.gov/ocated;
• Your l/http://www.fda.gov/ocal Postmaster;
• The l/http://www.fda.gov/ocal media — television, radio, or newspaper consumer actionlines.
• www.consumerworld.org lists international, federal, state, l/http://www.fda.gov/ocal, and private consumer agencies as well as Better Business Bureaus, consumer organizations, and professional ass/http://www.fda.gov/ociations.

Federal Government

• The Consumer's Resource Handbook offers tips on buying products and services, and lists contacts for information and assistance. For a free copy, write: Federal Citizen Information Center , Pueblo , Colorado 81009 .
• If you're not sure which federal agency has jurisdiction over your inquiry or complaint, contact the Federal Information Center listed in the U.S. government section of your phone book.

Dispute Resolution Programs

Many consumers and businesses use dispute resolution programs — mediation and arbitration — as an alternative to going to court. Some businesses require consumers to arbitrate their disputes and waive their right to go to court. Check your contract or product packaging for details.

Some programs are free. Others charge a flat fee, or a rate based on your ability to pay.

• Mediation involves a neutral third party — a mediator — who helps you and the other party try to resolve the problem. However, it's up to you and the other party to reach an agreement.
• Arbitration is less formal than court, though you and the other party may appear at hearings, present evidence, or call and question each other's witnesses. Unlike mediation, an arbitrator or panel makes a decision once you've presented your case. The decision may be legally binding.

The following organizations can help you find a program near you:

• your state attorney general or l/http://www.fda.gov/ocal consumer protection agency;
• small claims courts and court systems;
• nonprofit dispute resolution organizations;
• bar ass/http://www.fda.gov/ociations and law school clinics;
• Better Business Bureaus;
• Ass/http://www.fda.gov/ociation for Conflict Resolution at 1015 18th St., NW, Suite 1150 , Washington , DC 20036 ; 202-464-9700; acr@ACRnet.org.

Sample Complaint Letter

For More Information

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Holiday Shopping? How To Be On Guard When You’re Online

Thinking about shopping for the holidays? It’s no secret that browsing and buying online can save you time, money, and effort. The Federal Trade Commission (FTC), the nation’s consumer protection agency, says shoppers who stop and think before they click can prevent an online Scrooge from interfering with their purchases and ultimately, their holiday fun.

The FTC and the technology industry recently launched OnguardOnline, a campaign to help consumers integrate online safety into their daily online routines. The agency says that consumers who take a few precautions when they’re online can help minimize the chances of a mishap. Among the tips from OnGuardOnline.gov are:

• Know who you’re dealing with. Anyone can set up shop online. Confirm an online seller’s physical address and phone number in case you need to get in touch with them. If you get an email or pop-up message from the seller while you’re browsing that asks for financial information, don’t reply or click on the link in the message. Legitimate companies don’t ask for this information via email or pop-ups.
• Read between the lines. Read the seller’s description of the product closely, especially the fine print. Words like “refurbished,” “vintage,” or “close-out” may indicate that the product is in less-than-mint condition; name-brand items with “too good to be true” prices could be counterfeits.
• Calculate the costs. Check out websites that offer price comparisons and then, compare “apples to apples.” Factor shipping and handling into the total cost of the order. Then, stack these costs against your budget and needs.
• Pay by credit or charge card. Do not send cash under any circumstances. If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating. In the event your credit or charge card is used without your knowledge and permission, you generally are liable for no more than $50 in charges per card. Many companies do not hold consumers responsible for any unauthorized charges made online, and some card issuers may provide additional warranty, return, and/or purchase protection benefits.
• Check out the terms of the deal, like refund policies and delivery dates. Can you return the item for a full refund? If you return it, who pays the shipping costs or rest/http://www.fda.gov/ocking fees? Check on when you can expect to receive your order. The law requires sellers to ship items as promised or within 30 days after the order date if no specific date is promised. Can the recipient return your gift? If so, ask that a gift receipt be included in the package.
• Keep a paper trail. Print and save records of your online transactions, including the product description and price, the online receipt, and copies of any email you exchange with the seller. Read your credit card statements as you receive them to be on the lookout for unauthorized charges.
• Don’t email your financial information. Email is not a secure method of transmitting financial or personal information like your credit card, checking account, or S/http://www.fda.gov/ocial Security number. If you begin a transaction and want to provide your financial information through an organization’s website, look for indicators that the site is secure, like a l/http://www.fda.gov/ock icon on the browser’s status bar or a URL for a website that begins “https:” (the “s” stands for “secure”). Unfortunately, no indicator is foolproof; some fraudulent sites have forged security icons.
• Use anti-virus software and a firewall and update them regularly. Anti-virus software protects your computer from viruses that can destroy your data, slow your computer’s performance, cause a crash, or even allow spammers to send email through your account. It scans your computer and incoming email for viruses, deleting them. Your anti-virus software should update routinely with antidotes to the latest “bugs” circulating through the Internet. Firewalls help keep hackers from using your computer to send out your personal information without your permission. Think of a firewall as a guard, watching for outside attempts to access your system and bl/http://www.fda.gov/ocking communications to and from sources you don’t permit. If your operating system doesn’t include a firewall, get a separate software firewall, or install a hardware firewall — an external device that includes firewall software.
• Check a company’s privacy policy before doing business. It should let you know what personal information the website operators are collecting, why, and how they’re going to use it. If you can’t find a privacy policy — or if you can’t understand it — consider taking your business to another site that’s more security-conscious and customer-friendly.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Resolving Consumer Disputes: Mediation and Arbitration

How frustrating! You buy a product and it breaks. You try to return it or have the company fix it, but don't succeed. You talk with the salesperson, speak with the manager, and write letters to the company, and still you're not satisfied with the company's response.

Maybe it's time to try an alternative dispute resolution (ADR) program — an option that businesses, private organizations, and government agencies use. Dispute resolution programs can be quicker, cheaper, and less stressful than going to court.

Mediation and Arbitration
The two most popular types of dispute resolution are mediation and arbitration. In mediation, a neutral third party — a mediator — helps you and the other party try to resolve the problem through facilitated dialogue. However, it's up to you and the other party to reach an agreement.

Arbitration is less formal than court, though you and the other party may appear at hearings, present evidence, or call and question each other's witnesses. Unlike mediation, an arbitrator or panel makes a decision or award once you've presented your case. The decision may be legally binding.

Finding a Dispute Resolution Program
The following organizations can help you l/http://www.fda.gov/ocate programs in your area:

• your state attorney general or l/http://www.fda.gov/ocal consumer protection agency;
• small claims courts and court systems;
• nonprofit dispute resolution organizations;
• bar ass/http://www.fda.gov/ociations and law school clinics;
• Better Business Bureaus;
• Ass/http://www.fda.gov/ociation for Conflict Resolution at 1015 18th St., NW, Suite 1150 , Washington , DC 20036 ; 202-464-9700; acr@ACRnet.org.

Choosing the Right Program
Contact and compare several ADR programs to find the one best suited to your needs.

• Is the program voluntary or mandatory? Many dispute resolution programs are completely voluntary. Whether to use them is your decision. In some states, however, a court may order you to try arbitration or mediation. Some companies require consumers to arbitrate their disputes and waive their right to go to court. Check your contract or product packaging for details.
• What's required and how long will it take? It varies. Mediation requires meetings; arbitration uses hearings. Either may take place in person, by phone, or by video conferencing. However, some programs resolve disputes based solely on written statements — sometimes called "desktop" arbitrations. In some cases, you'll begin with mediation, and if no decision is reached, you'll progress to arbitration.

One of the benefits of ADR is that disputes are usually resolved more quickly than a court pr/http://www.fda.gov/oceeding.

• Can I help select the mediator or arbitrator? Maybe. Many programs offer lists of neutral third parties from which to choose. Be aware that your ADR provider or your state may have ethics rules for third parties to assure impartiality. For example, the third party cannot get personally involved in the dispute or benefit from the resolution. Ask the the program administrator for a copy of the rules.
• How confidential is the program? Find out if the program guarantees confidentiality. Mediation generally is confidential; arbitration sometimes is. If confidentiality is important to you, make sure you get the specifics before committing to the program.
• How neutral is the program? To get a sense of neutrality, ask who pays for it, and whether it is administered by an independent agency.
• What are the costs? Some programs are free. Others charge a flat fee or a rate based on your ability to pay. Of course, if you have an attorney or other representation, you also pay their fees.
• Is the decision binding — that is, must both parties accept it? Mediation is nonbinding; arbitration may be binding on the company, both parties, or neither. If the arbitrator's decision is nonbinding, you can reject it and try other avenues, including small claims court in some areas.

Preparing for an ADR Program
The program will progress more easily and effectively if you are well prepared.

• Understand and follow the program's rules. Make sure you meet all the preliminary requirements. For example, first try to resolve the problem with the company.
• File your claim promptly. The earlier you submit your claim or written statement and have the meeting or hearing, the less likely you are to forget important details.
• Outline the important facts of the case. You'll need to be able to tell when and where you bought the product or service, what the specific problem is, and what you've done to try to resolve the problem.
• D/http://www.fda.gov/ocument your claims. Make copies of receipts, repair orders, warranties, cancelled checks, contracts, or any other supporting d/http://www.fda.gov/ocuments.
• Ask if you're allowed to have witnesses. If so, make sure you know what they'll say or submit in writing.
• Know what you want from the company. Decide whether you want a refund, exchange, repair, or reimbursement on expenses you've incurred, including repair costs. At the same time, be flexible. You may have to compromise.

Going to Court
If a dispute resolution program does not settle the problem, you may want to sue. If the right to sue is important to you, check contracts carefully — before you sign — to see if they waive your right to sue. If you enter into an arbitration program that's binding on both parties, you've given up your right to sue. Agreements to resolve disputes through binding arbitration are generally enforceable, even if you did not sign a contract and the agreement to arbitrate is on the product packaging. Time constraints also can be a problem. Know the jurisdiction's time limitations on filing a suit.

For More Information
The Consumer's Resource Handbook offers tips on buying products and services, and lists contacts for information and assistance. For a free copy, write: Federal Citizen Information Center, Pueblo, Colorado 81009.

For concerns about privately-run programs, write: Ass/http://www.fda.gov/ociation for Conflict Resolution at 1015 18th St., NW, Suite 1150, Washington, DC 20036; 202-464-9700; acr@ACRnet.org.

The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.