FTC Rule for protecting consumers when ordering online, phone, etc

[GS1100GK]

I've recently seen some BS thrown at/on our fellow members when they place orders that never arrive or they are told they cannot cancel an order, are charged "non-refundable" order fees for products never delivered, etc.

Most people immediately think Better Business Bureau, but here is something with some real teeth.

Here are some FACTS about these situations. Notice the fines for intentional violations.
Also notice this is a RULE, not a GUIDELINE. Rules are backed by enforcement by the law.

As always, try to work with the vendor to resolve any complaints or problems. You can ALWAYS agree to a delay is your choice.

An educated consumer is a powerful consumer. Be smart.

Hope this helps our members not get ripped off.

- John


FTC’s Mail or Telephone Order Merchandise Trade Regulation Rule (the "Rule")

Here is the info: http://business.ftc.gov/documents/bus02-business-guide-mail-and-telephone-order-merchandise-rule

A few excerpts:

What Does the Rule Cover?

It applies to most goods a customer orders from the seller by mail, telephone, fax, or on the Internet.
It does not matter how the merchandise is advertised, how the customer pays, or who initiates the contact.


What is the Mail or Telephone Order Rule?

The Rule requires that when you advertise merchandise, you must have a reasonable basis for stating or implying that you can ship within a certain time. If you make no shipment statement, you 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.​

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When You Must Cancel an Order

You must cancel an order and provide a prompt refund when:

• the customer exercises any option to cancel before you ship the merchandise;
• the customer does not respond to your first notice of a definite revised shipment date of 30 days or less and you have not shipped the merchandise or received the customer’s consent to a further delay by the definite revised shipment date;
• the customer does not respond to your notice of a definite revised shipment date of more than 30 days (or your notice that you are unable to provide a definite revised shipment date) and you have not shipped the merchandise within 30 days of the original shipment date;
• the customer consents to a definite delay and you have not shipped or obtained the customer’s consent to any additional delay by the shipment time the customer consented to;
• you have not shipped or provided the required delay or renewed option notices on time; or
• you determine that you will never be able to ship the merchandise.

How Quickly You Must Make a Refund

When you must make a Rule-required refund, the following applies:

• If the customer paid by cash, check, or money order, you must refund the correct amount by first class mail within seven working days after the order is cancelled.
• If the customer paid by credit, you must credit the customer’s account or notify the customer that the account will not be charged, within one customer’s billing cycle, after the order is cancelled.

When making Rule-required refunds, you cannot substitute credit toward future purchases, credit vouchers, or scrip

Merchants who violate the Rule can be sued by the FTC for injunctive relief, monetary civil penalties of up to $16,000 per violation (any time during the five years preceding the filing of the complaint), and consumer redress (any time during the three years preceding the filing of the complaint). When the mails are involved, the Postal Service also has authority to take action for problems such as non-delivery. State law enforcement agencies can take action for violating state consumer protection laws.

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