Online auctions: your rights explained Your online auction site rights

There's a world of temptations on sites like eBay, from bargain-priced unwanted presents to hard-to-find collectables.

But buying from online auction sites isn't without potential problems. You could be sent something that isn't what you thought you had bid for – or even receive nothing at all.

Your rights when buying through an online auction site such as eBay are not the same as when buying from a shop, or even buying from an online retailer.

Your shopping rights on online auction sites

When you buy from a regular high-street shop or online retailer you have certain consumer rights. For example, under the Sale of Goods Act, the goods you buy must be 'as described', 'of satisfactory quality' and 'fit for purpose'.

However, an online auction site is not the same as an online store – it simply matches buyers with sellers.

So your shopping rights are not against the online auction site, but against the person from whom you have bought the item. Most of the sellers on sites like eBay are private individuals, so you don't have the same rights as you would when buying from a company or retailer. 

Buying on eBay is more like buying from a classified advert in a local paper, and the principle of 'buyer beware' applies.

Some people who sell through online auctions sites like eBay may be doing so much business they are considered traders rather than individuals. In this case you would have the same rights as if you bought from a company, but you would have to find evidence of this if you wanted to make a claim against them as a company.

Buying from an individual on an online auction site

Collectors' items that could be sold on Ebay

When you buy from an individual, the Sale of Goods Act says that what you buy must not be wrongly described (for example, something second-hand described as 'new'). And if a seller takes your money but sends nothing, it is fraud.

In either of these cases, you can report the matter to your local trading standards department. It may take action against the online auction seller, but it won't be able to resolve your dispute with them or get your money back.

You should also report the matter to the online auction site. It may not be able to help with the dispute, but it might blacklist the seller.

Find out more about your rights under the Sale of Goods Act in our guide.

How online auction sites can help

Although they do not have legal responsibilities for the actions of sellers, some online auction websites offer complaint resolution services or protection against fraud.

eBay, for example, offers a choice of mediation or arbitration schemes and an insurance scheme that will pay out if you are a victim of fraud. However, there are limitations on how and when you can use these schemes, so you could still easily end up out of pocket.

Check eBay's help pages if you have a problem buying or selling on eBay.

If you pay for double glazing with a credit card you get extra protection.

Protection if you pay at online auctions by credit card

If you can, use a credit card to pay for the goods you buy through an online auction site. If the item costs over £100 but nor more than £30,000 and you pay for at least part of it on your card, the card company will be 'jointly and severally liable' for breaches.

This means that you would be able to claim against the card company if your order doesn't arrive, is faulty, or is not what was described on the website.

But if you're buying from an individual, it's unlikely that you will be able to pay by credit card.

Some sites will insist that you pay with another method, such as PayPal, or the seller may want you to pay by cheque or money transfer.

PayPal has its own measures to protect buyers and sellers from fraudulent transactions, but you do not have the same legal rights against PayPal as you do against a credit card company.

Internet shopping laws and online auction sites

Distance Selling Regulations give you the right to a 'cooling-off' period when you buy most types of goods online. This means that you have seven working days after you receive an online order to cancel it and get your money back.

It's unclear whether online auctions are covered by these regulations – although the auction house would not have to give you this right to cancel, it is not yet known whether a trader you bought something from would.

Selling goods on eBay

Our guide to selling on eBay has all the info you'll need to get started selling successfully on auction sites such as eBay.