Online shopping isn’t only the future, but our present. It’s here right now and isn’t going anywhere. The convenience, variety of brands, and range of prices. It’s an experience brick-and-mortar can’t provide. But online shopping doesn’t always go to plan, so it’s important to know your rights. 

But what are they? Are there laws and regulations that protect us? Yes, thankfully. From protecting your personal information to regulations that ensure you’re not charged for products you never ordered or received, these laws can be your best friends when shopping online.

Federal Laws Protecting Buyers

Fair Credit Billing Act (FCBA)

If you’ve ever discovered a fraudulent charge on a credit card, you’re not alone. Credit card fraud affects approximately 151 million adults every year in the U.S. When this happens to you, the Fair Credit Billing Act (FCBA) can protect you.

This law was enacted in 1974 and is designed to target unfair credit billing practices. Under FCBA, you can dispute credit card billing errors that include unauthorized charges, charges for services for goods you didn’t accept, or charges listing the wrong amount or date.

Truth in Lending Act (TILA)

Passed in 1968, the Truth in Lending Act (TILA) requires lenders to provide you with easy-to-understand information about the terms of the credit they provide. How does this relate to credit card purchases? This law gives you protection if your credit card has unauthorized use and establishes procedures to resolve billing errors.

Electronic Fund Transfer Act (EFTA)

Many of the laws and protections for online shoppers protect credit card transactions, but the Electronic Fund Transfer Act (EFTA) protects you if your debit card or ATM card is stolen or lost. If this happens to you, you only have limited liability for unauthorized charges, as long as you promptly report the loss or theft.

Specific Protection Laws for Online Shopping

Federal Trade Commission’s (FTC) Mail, Internet, or Telephone Order Merchandise Rule

The Federal Trade Commission’s (FTC) Mail, Internet, or Telephone Order Merchandise Rule is often called the “30-Day Rule.” This law protects buyers who purchase goods or services via mail, phone, fax, or the internet. 

Under the 30-Day Rule, sellers are required to ship your products within the timeframe specified in their advertisements. If no specific timeframe is offered by the seller, they have to ship products within 30 days.

Delays happen, sometimes beyond the seller’s control. In this case, they are required to notify you and provide a revised shipping date. At the same time, they have to give you the option of canceling your order and receiving a prompt refund. The seller is also required to refund your money within seven business days if you paid by cash, check, money order, or debit card.

Restore Online Shoppers’ Confidence Act (ROSCA)

ROSCA prohibits online sellers from passing your credit card information to third-party sellers without your consent. This law protects online shoppers from deceptive marketing practices and ensures a more transparent ecommerce experience. 

ROSCA also requires that businesses disclose all material terms of a transaction before they obtain your billing information. They must have your express informed consent before charging your account, and give you an easy way to stop recurring charges. 

Children’s Online Privacy Protection Act (COPPA)

While this law doesn’t specifically address online shopping, COPPA regulates what information a company can legally collect from a child and how any information is used. This act has implications for online shopping if a child purchases something online without parental consent, or when children share personal information about themselves. 

Computer Fraud and Abuse Act (CFAA)

While the CFAA is a federal cybersecurity law that’s designed to combat computer hacking, it also protects consumers against data breaches that expose their confidential information. For online shoppers, this law protects against unauthorized access or use of your confidential customer data.

Section 5 of the FTC Act

The Consumer Protection Bureau enforces Section 5 of the Federal Trade Commission Act. This section requires that consumers be fairly treated and not deceived by businesses, either online or in a brick-and-mortar establishment. 

Protection Policies from Individual Online Platforms

While it’s rewarding to support small businesses and startups, buying items from an online store has certain risks. It’s not always easy to find out who owns a store, so if you never receive your item, you could find yourself trying to chase down a ghost. Also, there are countless online stores whose owners live outside the U.S., so it’s challenging to enforce the laws when dealing with these merchants. 

To shop more carefully online is to buy from a reputable online marketplace. In addition to federal laws protecting online shoppers, many online marketplaces have their own built-in protections. 

• Amazon’s A-to-Z Guarantee: When a third-party seller fails to fulfill its obligation, Amazon’s guarantee kicks in. The guarantee covers both the condition of your items and timely delivery. If you receive a damaged or defective item –or if you don’t receive the item at all – and the seller refuses to refund you, you can request a refund directly from Amazon. 
• PayPal Purchase Protection: One way to be sure you’re not defrauded when shopping is to use PayPal. If you pay with PayPal and don’t receive your item, PayPal will help you get a full refund. 
• Etsy Buyer Protection Policy: Shopping on Etsy is safe because they guarantee to protect buyers. If you don’t receive your item, or it’s distinctly different than what the listing describes, Etsy will refund you.
• Walmart Marketplace Purchase Protection: When you buy items from third-party sellers on Walmart’s website, Walmart will help you resolve any issue that arises.
• eBay’s Money Back Guarantee: The eBay guarantee applies to almost everything sold on eBay. If you never receive an item or it is vastly different than what was described, you’re eligible for a refund.

Disputing Credit Card Charges

Under the Fair Credit Billing Act (FCBA), you can dispute fraudulent or erroneous charges to your credit card.

When you see an error or suspicious charge, contact your credit card issuer within 60 days of the date on the statement. Once the issuer receives your charge dispute, they are required by law to acknowledge your complaint within 30 days in writing. They are also required to resolve the dispute within 90 days or two billing cycles. One thing to keep in mind – the FCBA doesn’t protect you for the quality of goods purchased or services provided. This law only protects you from billing errors or fraudulent activity.

When it comes to buyer protection, it’s easy to feel overwhelmed, especially when faced with fraud or deception. But with the right knowledge, you can shop with confidence. These laws are here to protect you, so keep them in mind to make sure your online shopping experience is safe and secure.