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Under federal law, online sellers have to ship when they say they will, even in an ad. If they don’t? Well, they’re required to tell you and give you an opportunity to cancel the order or get a full refund.
The FTC ruler requires that when you advertise merchandise for sale in the Untied States, you must have a reasonable basis for stating or implying that you can ship within a certain time. You must keep your promise or must give the buyer an opportunity to cancel the order or get a full refund.
If the seller ,akes no shipment statement, it must have a reasonable basis for believing that you can ship within 30 days. That is why direct marketers sometimes call this the "30-day Rule."
If, after taking the customer’s order, you learn that you cannot ship within the time you stated or within 30 days, you must seek the customer’s consent to the delayed shipment. If you cannot obtain the customer’s consent to the delay -- either because it is not a situation in which you are permitted to treat the customer’s silence as consent and the customer has not expressly consented to the delay, or because the customer has expressly refused to consent -- you must, without being asked, promptly refund all the money the customer paid you for the unshipped merchandise.
Whenever you change the shipment date by providing a delay notice, you must have a "reasonable basis" for:
the new shipment date, or
any representation that you do not know when you can ship the merchandise.
"Reasonable basis" means that the merchant has, at the time of making the representation, such information as would under the circumstances satisfy a reasonable and prudent businessperson, acting in good faith, that the representation is true.
In 2020, on line vendor Fashion Nova paid $9.3 million U.S. to settle an FTC prosecution for violating the Rule. “According to the FTC, despite Fashion Nova’s use of phrases like ‘Fast Shipping,’ ‘2-Day Shipping,’ and ‘Expect Your Items Quick!,’ the company often failed to meet its shipping promises to consumers, and failed to meet the Mail Order Rule’s requirement that consumers must be notified of shipping delays and given the chance to cancel orders and receive prompt refunds. The upshot: The company violated consumers’ legal right to decide for themselves either ‘OK, I’ll wait’ [for you to meet the newly stated delivery date] or ‘No way.’ Cancel and refund my money.” In addition, the complaint alleged that Fashion Nova at times failed to refund consumers for the items it didn’t ship. Instead, it was the company’s policy to issue gift cards, which aren’t considered refunds under the Mail Order Rule. The company also failed to cancel orders and provide refunds when it didn’t offer consumers delay option notices.”
The FTC ruler requires that when you advertise merchandise for sale in the Untied States, you must have a reasonable basis for stating or implying that you can ship within a certain time. You must keep your promise or must give the buyer an opportunity to cancel the order or get a full refund.
If the seller ,akes no shipment statement, it must have a reasonable basis for believing that you can ship within 30 days. That is why direct marketers sometimes call this the "30-day Rule."
If, after taking the customer’s order, you learn that you cannot ship within the time you stated or within 30 days, you must seek the customer’s consent to the delayed shipment. If you cannot obtain the customer’s consent to the delay -- either because it is not a situation in which you are permitted to treat the customer’s silence as consent and the customer has not expressly consented to the delay, or because the customer has expressly refused to consent -- you must, without being asked, promptly refund all the money the customer paid you for the unshipped merchandise.
Whenever you change the shipment date by providing a delay notice, you must have a "reasonable basis" for:
the new shipment date, or
any representation that you do not know when you can ship the merchandise.
"Reasonable basis" means that the merchant has, at the time of making the representation, such information as would under the circumstances satisfy a reasonable and prudent businessperson, acting in good faith, that the representation is true.
In 2020, on line vendor Fashion Nova paid $9.3 million U.S. to settle an FTC prosecution for violating the Rule. “According to the FTC, despite Fashion Nova’s use of phrases like ‘Fast Shipping,’ ‘2-Day Shipping,’ and ‘Expect Your Items Quick!,’ the company often failed to meet its shipping promises to consumers, and failed to meet the Mail Order Rule’s requirement that consumers must be notified of shipping delays and given the chance to cancel orders and receive prompt refunds. The upshot: The company violated consumers’ legal right to decide for themselves either ‘OK, I’ll wait’ [for you to meet the newly stated delivery date] or ‘No way.’ Cancel and refund my money.” In addition, the complaint alleged that Fashion Nova at times failed to refund consumers for the items it didn’t ship. Instead, it was the company’s policy to issue gift cards, which aren’t considered refunds under the Mail Order Rule. The company also failed to cancel orders and provide refunds when it didn’t offer consumers delay option notices.”
