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.

Richard Chapo is the lead attorney for the law firm http://www.SanDiegoBusinessLawFirm.com - a firm providing legal advice to California businesses. This article is for general education purposes and does not address every facet of the subject matter. Nothing in this article creates an attorney-client relationship.

---

Leading eCommerce Consultant Admits You Should Only Listen to One Real Expert! (And its not him!)

Let me share with you a secret that most marketing... Read More

Top 5 Dot Com Myths Debunked

Most people who get into business know what's involved. They... Read More

Grow Your Business Using B2B Emarketplace ? Part II

Selecting the right emarketplaceAlthough, IT spending has been staying flat... Read More

eCommerce, How Much Does It cost?

Making profits with your existing website design or creating a... Read More

How to Generate Cash from Your Web Site

The Internet has changed the way people do business today.... Read More

Online Credit Card Processing - How to Accept Credit Cards - Ecommerce 101

Back in 1998 (through 2000 or so), I worked for... Read More

Is ClickBanks Popularity Drawing To An End?

ClickBank is the Internet's most popular payment processor for online... Read More

Start doing online business using B2B Portals in Six Steps

I registered with a B2B site but what's next?This is... Read More

Maximize Your Froogling for Increased Website Profits

Are you familiar with Froogle? If you are an online... Read More

The Top 10 E-Commerce Ways to Follow up with Clients - Part 2

Did you know that 80% of all sales are made... Read More

Simple Steps to Start a Profitable Member Only, Subscription Web Site

Having a successful member only, paid membership site is one... Read More

Government Buying and Selling on the Internet

Global Insight, a leading economic and financial forecasting company, (formerly... Read More

How To Implement E-Business Solutions Successfully

Pitfalls of E-business solutions installation processA large distribution company has... Read More

The Origins of E-Commerce

What is the Internet?In order to provide a discussion on... Read More

How To Accept Credit Cards Without a Merchant Account

To increase sales on your website, you must accept credit... Read More

Something new in e-commerce: the Echo System Build

How four partners build and manage an exclusive art posters... Read More

Getting Started in ECommerce ? Part Two

In Part One we talked a little bit about what... Read More

7 Key Steps To Reduce Refunds and Chargebacks

One sure-fire way to loosing out big time on your... Read More

Choosing an Ecommerce Shopping Cart

Choosing an online shopping cart is a big decision. Unlike... Read More

Online Merchant Account - Costs and Alternatives

Merchant Account BasicsA Merchant Account is a commercial bank account... Read More

Saving Money On Your E-commerce Site

After building and transferring many e-commerce sites it still amazes... Read More

Grow your Business with Emarketplace - Part III

Increase Company ProductivityAfter years of hard work, finally your business... Read More

Accept Credit Cards Online Without A Merchant Account

It is often assumed if you want to accept credit... Read More

Say Something Worth Talking About

I recently published a short e-book called 'One Thing I... Read More

Intranet Portals ? Collaboration through Team Rooms

Knowledge Management for beginnersKnowledge Management (KM) can be defined simply... Read More

Ecommerce Marketing Plan

Concept of ServiceThe current work deals with marketing offer of... Read More

Shop: Is Shopping Online Secure?

Is shopping online becoming popular and safe enough for you... Read More

Coupons & Rebates

Yes, it's true, coupons are not just for newspapers anymore.... Read More

Intranet - The Benefits Realisation Plan

The Millennium ExperienceA successful project is one that delivers on-spec... Read More

The Internet and Customer Care: Aid or Anarchy?

It was reported in 'Marketing' magazine this month, that Britain... Read More

Alternative E-Commerce Solutions

Over the past several years, the Internet has emerged as... Read More

E-Commerce Is Back On The Fast Track

How much holiday shopping did you do on-line this year?... Read More

When Do You Ask For A Refund?

Have you ever asked to have your money refunded after... Read More