Consumer Protection Law

What Are The Rules For Mail Order Sales?

Key Takeaways

  • The FTC’s Mail, Internet, or Telephone Order Merchandise Rule requires sellers to ship their products within the time advertised.
  • If the seller has shipping delays, they have to notify the buyer.
  • The buyer can cancel the order for a prompt refund or accept the shipping delays.

You have rights when you make purchases online, by phone, or through the mail. Buyer’s rights include shipping within a reasonable time and notifying you of any shipment delay. You can also get a full refund for shipping delays if you don’t want to wait.

Unfortunately, some companies delay shipments or claim that they can’t issue a refund. Understand the federal Mail Order Merchandise Rule so you can protect your buyer’s rights. If you have questions about the rules for online and mail-order sales, talk to a consumer protection lawyer.

Understanding the FTC’s Mail Order Sales Rule

The Federal Trade Commission (FTC) established the Mail Order Rule in 1975. Since then, amendments have updated the rule to include most internet and online shopping. This consumer protection law requires sellers to reasonably represent their products, including shipping and handling claims.

You should be able to rely on the seller’s shipping representation, including how long it will take to ship a product. If there’s a shipping delay, the seller must notify you and get your consent for delayed shipping. Delays give you the right to cancel the order and get a prompt refund for any unshipped merchandise. If the item isn’t available, you can’t just substitute another product.

Mail Order Rule for Online, Mail, and Phone Purchases

The FTC’s Mail, Internet, or Telephone Order Merchandise Rule (16 CFR Part 435) applies to consumer purchases by phone, mail, or the Internet. The rule covers:

  • Buying products from an infomercial
  • Calling a number from an ad in the mail
  • Ordering online from Amazon

Buyers can expect reasonable shipping times, no matter how much they pay for the order. Payment methods can include paying by credit card, check, or money order. You should expect a reasonable basis for getting the product shipped in the time advertised. If the seller doesn’t represent the shipping time frame, the seller can expect shipment within a 30-day period.

Some types of mail-order business or telephone-order sales are excluded from the mail-order rules. This includes magazine subscriptions, seeds and growing plants, and collect-on-delivery (COD) orders.

Business Requirements for Mail and Online Orders

When businesses advertise merchandise for sale, they must have a reasonable basis for shipping the goods within the stated time. Selling goods if they can’t ship in a reasonable time is an unfair or deceptive business practice.

If there will be shipping delays, the seller has to communicate to you within a reasonable time period. The seller also has to tell you that you can consent to the delay or cancel and get a refund. If you cancel, the seller has to give you a prompt refund. The refund should be sent at least as fast as first-class mail or within seven business days.

Businesses have to keep records of any documentation to show a reasonable basis for shipping dates. A business without evidence creates a rebuttable presumption that the seller didn’t have a reasonable basis for timely shipments.

Consumer Mail Order Sales Rule Rights

When you buy something from a telemarketer, television shopping network, or online, you can expect to receive the product in the time given. If they don’t advertise a shipping time, it should ship within 30 days. If there are any delays, the seller has to notify you immediately. You can agree to the delay or cancel the order.

You may also have additional consumer protections under state law. Consult your state consumer rights agency to see if additional mail and online order rules protect your purchases.

What To Do if Your Order Isn’t Delivered

If you ordered something online, through the mail, or by phone, keep track of when it was supposed to ship. Keep any notifications of shipping delays or shipping updates. You can cancel orders for unshipped merchandise and get a refund.

If the company didn’t tell you about delays or your cancellation rights, you can report the violations to the FTC. The FTC can take legal action against companies who violate the Mail Order Sales Rule. The FTC can sue for injunctive relief to get the seller to change their policies and civil penalties of more than $50,000 per violation. The FTC can also help you enforce your consumer rights to get your money back. For legal advice about your online, phone, and mail order delivery rights, contact a consumer protection lawyer.

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