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16 CFR Part 435: Mail or Telephone Order Merchandise Rule; Final Rule Adopting Final Amendments, Including Revising the Rule’s Name to Mail, Internet, or Telephone Order Merchandise
DATE: September 17, 2014
Statement of Basis and Purpose
I. Background
The Rule prohibits sellers from soliciting mail, Internet [added 2014], or telephone order sales unless they have a reasonable basis to expect that they can ship the ordered merchandise within the time stated on the solicitation or, if no time is stated, within 30 days. The Rule further requires a seller to seek the buyer’s consent to the delayed shipment when the seller learns that it cannot ship within the time stated or, if no time is stated, within 30 days. If the buyer does not consent, the seller must promptly refund all money paid for the unshipped merchandise.
Full text: https://www.ftc.gov/system/files/do...notices/2014/09/140917regulatoryreformfrn.pdf
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Summary by business law site:
"If your business plans to ship products to customers, you need to be aware of the Federal Trade Commission's (FTC) Mail, Internet, or Telephone Order Merchandise Rule. Better known as the 30-Day Rule, it governs the manner in which businesses fulfill orders that are to be shipped. Basically, the rule is meant to ensure consumers that their goods will be shipped in a timely manner while also leaving a reasonable amount of flexibility for businesses.
The 30-Day Rule for Shipping Goods
The 30 Day Rule requires that when a business advertises shipping its goods within a certain time frame, the business must have a reasonable basis for stating so. If you don't make a statement regarding shipping time, you must ship within 30 days--thus, the 30-Day Rule. The 30-day window begins when the business receives a completed order and payment.
If the business is unable to ship within the promised time or within 30 days, the merchant must promptly tell the customer by mail, telephone or email, and give a new shipping estimate and give the customer a chance to cancel their order and receive a full refund. This offer to cancel or accept the new shipping date must give the customer sufficient time to make a decision. In other words, you can't call to inform a customer you can't make a shipping time and then demand an immediate answer.
If you don't wish to ask the customer whether you can delay the order, you can cancel the order yourself and give a full refund within the time period shipping was promised. All refunds that are forced by shipping delays must be full refunds, and not credit for future purchases."
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"16 CFR Part 435
RULE SUMMARY [by Federal Trade Commission]:
The Rule, issued in 1975, requires sellers who solicit buyers to order merchandise through the mail, via the Internet, or by phone to have a reasonable basis to expect that the sellers can ship within the advertised time frame, or, if no time frame is specified, within 30 days. The Rule also requires that, when a seller cannot ship within the promised time, the seller must obtain the buyer’s consent to a delay in shipping or refund payment for the unshipped merchandise.
For more information, see Business Guide to the FTC's Mail or Telephone Order Merchandise Rule."
DATE: September 17, 2014
Statement of Basis and Purpose
I. Background
The Rule prohibits sellers from soliciting mail, Internet [added 2014], or telephone order sales unless they have a reasonable basis to expect that they can ship the ordered merchandise within the time stated on the solicitation or, if no time is stated, within 30 days. The Rule further requires a seller to seek the buyer’s consent to the delayed shipment when the seller learns that it cannot ship within the time stated or, if no time is stated, within 30 days. If the buyer does not consent, the seller must promptly refund all money paid for the unshipped merchandise.
Full text: https://www.ftc.gov/system/files/do...notices/2014/09/140917regulatoryreformfrn.pdf
********************************************************
Summary by business law site:
"If your business plans to ship products to customers, you need to be aware of the Federal Trade Commission's (FTC) Mail, Internet, or Telephone Order Merchandise Rule. Better known as the 30-Day Rule, it governs the manner in which businesses fulfill orders that are to be shipped. Basically, the rule is meant to ensure consumers that their goods will be shipped in a timely manner while also leaving a reasonable amount of flexibility for businesses.
The 30-Day Rule for Shipping Goods
The 30 Day Rule requires that when a business advertises shipping its goods within a certain time frame, the business must have a reasonable basis for stating so. If you don't make a statement regarding shipping time, you must ship within 30 days--thus, the 30-Day Rule. The 30-day window begins when the business receives a completed order and payment.
If the business is unable to ship within the promised time or within 30 days, the merchant must promptly tell the customer by mail, telephone or email, and give a new shipping estimate and give the customer a chance to cancel their order and receive a full refund. This offer to cancel or accept the new shipping date must give the customer sufficient time to make a decision. In other words, you can't call to inform a customer you can't make a shipping time and then demand an immediate answer.
If you don't wish to ask the customer whether you can delay the order, you can cancel the order yourself and give a full refund within the time period shipping was promised. All refunds that are forced by shipping delays must be full refunds, and not credit for future purchases."
************************************************************
"16 CFR Part 435
RULE SUMMARY [by Federal Trade Commission]:
The Rule, issued in 1975, requires sellers who solicit buyers to order merchandise through the mail, via the Internet, or by phone to have a reasonable basis to expect that the sellers can ship within the advertised time frame, or, if no time frame is specified, within 30 days. The Rule also requires that, when a seller cannot ship within the promised time, the seller must obtain the buyer’s consent to a delay in shipping or refund payment for the unshipped merchandise.
For more information, see Business Guide to the FTC's Mail or Telephone Order Merchandise Rule."
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