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Prompt_Delivery_Rules_ _Internet_Product_Sales
| Prompt Delivery Rules - Internet Product Sales
The Internet is the fastest growing source of mail order sales.
The explosive growth in the goods and services sold online has
in the past taken many online sellers by surprise: demand has
outpaced supply, depleting inventories and disappointing
customers. This can lead to serious problems with the FTC.
The FTC has issues directives spelling out the ground rules for
making promises about shipments, notifying consumers about
unexpected delays, and refunding consumers' money. Enforced by
the FTC, the Mail or Telephone Order Rule applies to orders
placed by phone, fax or the Internet.
Complying With The Rule
By law, you must have a reasonable basis for stating that a
product can be shipped within a certain time. If your
advertising doesn't clearly and prominently state the shipment
period, you must have a reasonable basis for believing that you
can ship within 30 days.
If you can't ship within the promised time (or within 30 days if
you made no promise), you must notify the customer of the delay,
provide a revised shipment date and explain their right to
cancel and get a full and prompt refund.
For definite delays of up to 30 days, you may treat the
customer's silence as agreeing to the delay. But for longer or
indefinite delays - and second and subsequent delays - you must
get the customer's written, electronic or verbal consent to the
delay. If the customer doesn't give you approval, you must
promptly refund all the money the customer paid without being
asked by the customer.
Finally, you have the right to cancel orders that you can't fill
in a timely manner. Your must, however, promptly notify the
customer and make a prompt refund.
Running Late? Overwhelmed with Orders?
The Rule gives you several ways to deal with an unexpected
demand.
You can change your shipment promises up to the point the
consumer places the order, if you reasonably believe that you
can ship by the new date. The updated information overrides
previous promises and reduces your need to send delay notices.
Be sure to tell your customer the new shipment date before you
take the order.
You must provide a delay option notice if you can't ship within
the originally promised time. The Rule lets you use a variety of
ways to provide the notice, including e-mail, fax or phone. It's
a good idea to keep a record of what your notice states, when
you provide it, and the customer's response. If the FTC comes
calling, the records will act as your saving grace.
In Closing
If you are selling products online, make sure you have
sufficient inventory. The FTC has a history of aggressively
fining companies that fail to deliver products. This is
particularly true if you fall on your face during the Christmas
season.
About the author:
Richard A. Chapo is a business lawyer with SanDiegoBus
inessLawFirm.com - This article is for information
purposes only. Read more business law articles to help your business.
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