With an estimated 945 million online users in the year 2004, the Internet provides psychologists with a unique opportunity to gain insight into a myriad of psychological constructs and phenomena in nonclinical settings. Transcending geographical barriers, the Internet offers a quick, convenient and inexpensive method of data collection from a large population of widely dispersed participants. Whilst there are significant benefits involved with employing the Internet and its many applications, there is still considerable debate surrounding the use of this methodology. This paper examines the benefits, challenges and ethical considerations involved in undertaking a psychological study on the Internet. Current guidelines for conducting research via the Internet are reviewed and recommendations are made with regard to informed consent, privacy and confidentiality, and debriefing.