Economics Today and Tomorrow

Introduction
Students have learned how e-commerce has created changes in the business landscape and in the power of the consumer. In this exercise, students will examine how consumers should protect themselves when shopping in the world of cyberspace.

Lesson Description
Students will use information from the Better Business Bureau Online Web site to learn about security while shopping online. Students will read about the types of fraud on the Internet, ways to research the reliability of merchants, and ways in which consumers can safely shop online. Students will then answer four questions and apply this information by visiting an online store and evaluating the security provided to the consumer.

Previous Knowledge Expected
e-commerce: electronic commerce on the Internet
Web sites: electronic World Wide Web locations that store information to be viewed or downloaded

Applied Content Standards (from the National Council on Economic Education) Standard 5: Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations.

1. Students will to able to describe actions that consumers can take and the measures that merchants are using to protect consumers' online security.
2. Students will be able to use this knowledge to visit an online store and write an evaluation of the security provided to the consumer.

1. Fraud can be in the form of unsolicited commercial E-mail or spam that requests monthly payments or sensitive information. Because social security numbers and mothers' maiden names can be used to confirm identities, they should be guarded. Internet passwords should be changed periodically to maintain security. Sometimes fraudulent merchants try to copy well-known Web sites, so make sure that the site is authentic. For business opportunities offered on the Web, ask companies to mail copies of their statements, disclosures, and references. Then investigate their claims. Additionally, children should be monitored while online. Fraud should be reported to the Internet service provider, the Better Business Bureau, and the Federal Trade Commission or the local consumer protection agency.
2. Consumers can look for the "Better Business Bureau Online" seal, which indicates that merchants have been independently rated as consumer friendly. Several Web sites, such as BizRate.com, ePublicEye.com, and ewonders.com, provide ratings of consumers' shopping satisfaction with specific merchants. Before buying, consumers should check merchants' privacy and security policies.
3. While shopping online, consumers should always have security in mind. Check the address of the merchant's site, or the Uniform Resource Locator (URL) to confirm the company. If you are unsure about the Web site, look for a telephone number to call and verify its authenticity. You can even check with consumer agencies to ensure the company's reliability. Be cautious about supplying personal information, and use a different password for each account established. Before ordering, understand the company's shipping charges and return policy. Never supply your credit card number unless you are sure the business is operating with a secure server. Finally, be careful to enter the correct information when ordering, and always print a copy of each purchase order with its confirmation number.
4. Being cautious while shopping at the mall means being aware of physical threats. A thief may try to steal money by physically getting to one's wallet. While shopping online, consumers can be robbed by a thief who convinces them to give out their credit information. Sometimes we can be fooled into letting our guard down because we shop online from the comfort of our homes. Shopping online requires just as much caution as shopping at the mall, however.
5. Students' reports will vary.