By: Linda L. Goodman
The Federal Trade Commission (“FTC”) has issued a final ruling on the Mail or Telephone Order Merchandise Rule updating a longstanding rule governing mail and telephone based retailers to explicitly include e-commerce vendors as well. The rule originally passed in 1975, requiring mail and phone based sellers to ship ordered products and services within 30 days or explicitly inform the consumer when the product or services would be shipped is now fully applicable to online retailers.
Retailers must clearly and conspicuously notify the consumer when they will receive the product or service, but if they fail to do so they must now ship within 30 days of the order. If they can’t or don’t, they must refund customers’ payments. These changes become effective December 8, 2014, just before the holiday rush.
Though the rule itself doesn’t spell out specific penalties for non-compliance, it does fall under the Federal Trade Commission Act. Thus, merchants in violation could be sued by the FTC for injunctive relief, monetary civil penalties of up to US $16,000 per violation and consumer redress.
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This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
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