The Process of Ensuring the Safety of Online Transactions

Week 4 Forum – Online Shopping 1. If you are shopping online, how do you determine whether the merchant is trustworthy?

Do you use a different method to determine trustworthiness when you walk into a store and need to use a credit card for a purchase?

I use many factors to determine the legitimacy of a merchant when doing my online shopping. For instance, I look for sites with Secure Sockets Layer technology and those that start with HTTPS. The 'S' at the end implies that the site is securely encrypted. Furthermore, I also go through the ratings from other customers to get some insights into the buyers' experiences with the merchant. When it comes to shopping in stores, I prefer going to stores situated in populated areas.

Moreover, I also try to determine whether the store case security cameras are available.

These cameras record activities that are taking place in the store besides acting as an aid to prevent crime. I also check at the card reader for any signs of it being tampered with.

2. Who is better positioned to regulate online transactions and handle irregularities or complaints – consumer advocacy groups or the government? You might need to do some research on the purposes and functions of consumer advocacy groups AND the method of filing a consumer complaint with a consumer protection office (a government agency).

I believe that less government involvement is better, given that government interaction comes with more and more regulations. For example, the government established the Federal Trade Commission with the primary objective of protecting consumers, maintaining competition, and advancing organizational performance (American Enterprise Institute, n.d). Nonetheless, misleading advertisements and the time taken to handle consumer complaints have adversely affected the efficiency and effectiveness of the agency. On the other hand, consumer advocacy groups protect consumers from firms with political and financial power. To achieve this, they employ such tactics as lawsuits, letter-writing campaigns, boycotts, and publicity. Consumer advocacy groups appear to be more relentlessly effective in their harsh campaigns; hence, I believe they are the way to go.

Reference American Enterprise Institute (n.d) http://www.aei.org/publication/government-regulation-vsregulation-market-forcesconsumer-regulators/