Selling on the Internet: Prompt Delivery Rules
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The Mail and Telephone Order Merchandise Rule spells out the ground rules for making promises about shipments, notifying consumers about unexpected delays, and refunding consumers' money. Enforced by the Federal Trade Commission (FTC), the Mail and Telephone Order Rule applies to orders placed by phone, fax, or entirely on the Internet, as long as the telephone is used to transmit voice, computer data, or other electronic signals.
Complying With The Rule
According to the Rule, you must have a reasonable basis for stating or implying that a product can be shipped within a certain
time. If your advertising doesn't include a shipping statement, you must have a reasonable basis for believing that you can
ship within 30 days. If you can't ship when you promised, you must send the customer a notice advising him about the delay
and his right to cancel. For definite delays of up to 30 days, you may treat the customer's silence as agreeing to the delay.
But for longer or indefinite delays — and second and subsequent delays — you must get the customer's consent. If the customer
doesn't give you his okay, you must promptly refund all the money the customer paid you without being asked.
When an unexpected demand makes it impossible for you to ship within the time stated in your ad, you can give updated shipping information when the customer places an order. You must have a reasonable basis for the update. Updated information supersedes any representation in your ad and reduces your need to send delay notices. Finally, you have the right to cancel orders that you will not be able to fulfill in a timely way, but you must promptly notify the buyer of your decision and make a prompt refund.
For More Information
Contact the FTC's Consumer Response Center for the complete Business Guide to the Mail or Telephone Order Merchandise Rule and Advertising and Marketing on the Internet: Rules of the Road.
| You can file a complaint with the FTC by contacting the Consumer Response Center by phone: 202-FTC-HELP (382-4357); TDD: 202-326-2502;
by mail: Consumer Response Center, Federal Trade Commission, Washington, DC 20580; or through the Internet, using the online complaint form. Although the Commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern
of possible law violations.
The FTC publishes free brochures on many consumer issues. For a complete list of publications, write for Best Sellers, Consumer Response Center, Federal Trade Commission, Washington, D.C. 20580; or call (202) FTC-HELP (382-4357), TDD (202) 326-2502. |
© 1999 Federal Trade Commission