The holiday shopping season is off and running despite a shaky economy. Smart shoppers may be able to snap up bargains before, after and on Black Friday, the day after Thanksgiving that traditionally is one of the biggest shopping days of the year.

However, the Better Business Bureau (BBB) advises consumers to arm themselves with knowledge and a budget before hitting the stores. Setting limits on spending is especially important to avoid a deluge of post-holiday bills.

Shoppers should be wary of exaggerated claims of discounts whether shopping online, in a mall or at a free-standing store. Be sure to shop around to compare prices, matching descriptions or model numbers of items you want to buy.

When buying gifts, it’s important to obtain and keep receipts for all purchases in case the recipient needs to return an item. Many stores will provide gift receipts upon request, which allow returns but don’t show the recipient how much you paid for an item.

Be sure to check a store’s return and refund policy before you make a purchase. Although some stores relax their return policies during the holiday season, others may require that returns be made within a few days of purchase. Some only allow returns if a product is defective while others may give store credit instead of cash refunds.

While online shopping can be a way to avoid crowded stores, shoppers need to be careful of the sites they patronize. When shopping online, be sure to:

• Check the site’s security settings and read the company’s policy on sharing information with other sites. If the site is secure, its address should start with  https://. You also may see a picture of a small closed lock in the lower right hand corner of the screen.
• Know the company’s refund and return policies before ordering. Are there restocking fees? Do you have to pay shipping costs on returns?
• Do not rely on pictures of a product. Read the description and check model numbers, if applicable.
• Be cautious of free or very-low-price offers.  Often, free offers are followed by an open-ended enrollment in a program that automatically bills your credit card account. Before ordering anything online, make sure you click on and read all terms and conditions.
• Pay with a credit card whenever possible, so you can challenge the charge in the event of a dispute.
• Obtain a tracking number for shipments. If you need the product before the holidays, find out when the seller intends to ship it and if possible, how it will be shipped.

Toy safety also has become a concern for many parents. Make sure any toys you buy are appropriate for the age of the child. If possible, inspect toys carefully to look for sharp edges that may cut, moving parts that can pinch or small, removable pieces that can be a choking hazard. Toy chests should have air holes, and fabric products should be flame-resistant.

Online auctions can be a great place for finding deals at any time of year, but over the holidays such sites become hot spots for tracking down popular and hard-to-get gifts — such as new game consoles or must-have toys.  Better Business Bureau offers advice to shoppers on how to avoid getting ripped off when searching for bargains and hard-to-find presents through online auctions.

According to Jupiter Research, $38 billion will be spent on items auctioned through eBay alone in 2009.   For most buyers and sellers, the transaction is successful; however, online auctions can be fertile ground for scammers. In 2008 half of all complaints to the FBI related to online fraud were the result of online auction fraud and non-delivery of merchandise.

When bidding online for holiday gifts, BBB recommends that shoppers:

Find out how the auction site protects buyers and sellers from fraud. A responsible online auction site will take steps to protect both buyers and sellers from fraud. Find out what actions the auction site will take in your defense if you become a victim of an unscrupulous seller.

Compare the cost of the item elsewhere. Scammers will often price their items lower than the competition in order to lure in buyers. A lowball minimum bid for an item should be considered a red flag.

Research the seller. Online auction sites often provide the opportunity for buyers to rate sellers and provide feedback on the transaction. These reviews are a great way to determine the seller’s track record, but keep in mind that reviews are typically not authenticated and some sellers will pay for flattering reviews in order to mislead buyers. (more…)

Have you ever wondered how to identify scams that arrive in your mailbox, or how to reduce the amount of junk mail you receive? Wonder no more!

Better Business Bureau offers these tip to help consumers stay clear of junk mail scams:

It’s likely a scam if:

• The junk mail says you’ve won money or a gift even if you haven’t entered a sweepstakes.
• You’re asked to send money in order to claim your prize.
• You’re asked to verify your social security number, bank or credit card information via email or over the phone.
• If you’re told you purchased a product in the past but don’t remember doing so.
• You’re promised a “free” government grant for personal use.
• You’re guaranteed a loan or credit card for a fee despite poor credit.

Some statistics on identity theft:

• According to a Javelin Strategy and Research survey on ID theft, there was a 22 percent increase from 2007 to 2008.
• Javelin estimates that 9.9 million Americans became victims of identity fraud last year, resulting in the loss of $48 billion.
• A growing number of these cases are the result of stolen junk mail. Pre-approved credit card offers, fliers and specially marked envelopes are not only a nuisance, they are an easy target for ID thieves.

Tips for reducing the amount of junk mail you receive:

1. Pre-Approved Credit Card Offers

· Pre-approved credit card offers are an easy target for identity thieves who can steal incoming mail and use these offers to open fraudulent credit accounts.

· Stopping these pre-screened credit offers can help reduce the chances of identity theft. (more…)