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ARTICLE · 17 OCTOBER 2011

FTC Proposes Amendments To "Mail Order Rule" To Keep Up With Technology

Davis+Gilbert LLP
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For many years, the Federal Trade Commission (FTC) has required that sellers who solicit buyers to order merchandise through mail or telephone have a reasonable basis to expect that they can ship ordered merchandise within the time frame they advertise or, if they do not specify a time frame, within 30 days.

United StatesMedia, Telecoms, IT, Entertainment
Allison Fitzpatrick
Allison Fitzpatrick
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For many years, the Federal Trade Commission (FTC) has required that sellers who solicit buyers to order merchandise through mail or telephone have a reasonable basis to expect that they can ship ordered merchandise within the time frame they advertise or, if they do not specify a time frame, within 30 days. When a seller cannot ship within the promised time, the FTC's Mail or Telephone Order Merchandise Rule (the Rule) also requires that the seller either obtain the buyer's consent to the shipping delay or refund payment for the unshipped merchandise.

Now, the FTC is seeking to amend the Rule, which was last updated in 1993, in four significant ways. Specifically, the FTC proposes to:

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