Online shopping is still risky, despite the existence of guidelines and laws designed to protect consumers, an international study funded by the European Commission concludes. The report, Shopping Online 2001, was produced by Consumers International, with the involvement of 15 consumer organisations in 14 countries.

In late 2000 and early 2001, an international team of researchers, posing as internet shoppers, placed more than 400 orders for goods and services with websites around the world.

The study revealed that internet shoppers still face big problems, despite the existence of laws and guidelines. These were found to be widely flouted. Before consumers get to the point of actually placing an order, the study found that too many sites failed to:

give a clear total cost;

give consumers information about key terms and conditions of the contract; and

state which countries they do business with.

Having placed an order, internet shoppers still cannot be certain that their goods will arrive. The study found that 6 per cent of ordered items did not turn up. In a few cases, the researchers were charged for goods that were unavailable and, in 9 per cent of cases, retailers failed to send a refund for goods that had been returned to them. Where refunds were sent, many took well over a month to arrive.

Fewer than two-thirds of sites provided an immediate, precise indication that an order had been accepted. Where this did not happen, researchers were left uncertain as to whether their order had gone through and, because of this, some orders were inadvertently placed twice.

Less than half of the EU-based sites complied with the Distance Selling Directive by providing consumers with information about their seven day "cooling-off" period to withdraw from the contract. Only a minority of retailers waited until goods were dispatched before billing the customer.

The authors of the report recommend that consumers bear the following points in mind when they are purchasing online.

Who are you dealing with? Check the identity of the retailer, particularly if you haven't heard of them before. If you can't find a full business name, postal address and contact details such as e-mail address and phone number on the website, ask - or don't buy anything from it.

Returns and refunds: Find out about when and how you can cancel an order, or return something for refund before placing an order. Check if there are any restrictions or cancellations on returns.

If you are buying from another country, be particularly careful to check what you'll have to pay if you want to return goods - if you have to pay return postage this could make it prohibitively expensive. Be especially wary of buying from sites that do not describe their returns and refunds policy.

Complaints: Check if the site has a procedure and gives contact details for handling complaints. Look for sites that say they will handle complaints quickly and in a consumer-friendly manner.

Cost: Check the total cost carefully to make sure it includes delivery costs, taxes and any other costs. Make sure you're happy with the delivery cost stated. If the retailer cannot give you a specific delivery cost, make sure you know the most you would have to pay.

Payment methods: Given the problems encountered by the researchers with delivery and refunds, you should choose to pay after delivery if you can.

In some cases, paying by credit card gives you extra protection if things go wrong, because you have the right to pursue a claim against the card issuer as well as the trader.

Delivery times: Check whether the site quotes a target delivery date for your order. If you need the goods delivered by a certain date, make sure this is made clear to the retailer.

Site security: Check information on the company's security policies and, in particular, that the site has an encryption facility to encode your personal and financial details.

Warranties and guarantees: If you are buying something that may need after-sales work, such as an electrical item, check the warranty or guarantee details and check what you would have to do if you needed to get something fixed.

Records of your order: Print and keep a copy of your order and any confirmation of your order that you are sent. Also print and keep a copy of the terms and conditions, including the returns and refunds policy, so that you have a record of the policy that existed at the time you made your purchase. If you have to contact the retailer because your ordered goods don't turn up or because the goods are faulty when they arrive, make a note and keep a copy of all communication.

Privacy issues: Check the website's privacy policy (and be very wary if it doesn't have one).

Check to see how personal details you submit may be used and see if you have the option of refusing unsolicited mail, e-mail or phone calls.

Buying from abroad: If you are buying from a site based in another country, check which law applies to the contract you are entering into. If you buy something from another country and the contract is governed by the law of that country, it could be difficult to sort things out if something goes wrong.