What is an internet auction ?

No other online forum can bring as many buyers and sellers together as an internet auction 'marketplace'.

For buyers, online auctions offer the chance to snap up every possible kind of consumer good, often at bargain prices. It is not surprising that they are an extremely popular way to buy.

There are two main styles of internet auction:

1. Marketplace internet auctions: The business that runs the website is not directly involved in the auction process. It simply provides a forum and rules for buyers and sellers to deal with each other through a bidding process. Ebay is the best known example.
2. Traditional auctions: Instead of conducting an auction 'in person', an auction house uses a website to sell goods on behalf of a vendor.

Buying from another person on an auction website is not the same as buying from a business online or a shop. You should be aware of how your rights may differ and what protections are available to you.

Australian Competition & Consumer Commission