Is It Time To Update Your Shipping And Return Practices?

Last month, the Federal Trade Commission announced that it entered into a more than $2 million settlement with online retailer GOAT, resolving allegations that the company failed to comply with the FTC's Mail Order Rule and engaged in other deceptive marketing practices.

Mail Order Rule

If you're thinking about where you want to focus your attention as we start the new year, this is important enforcement action to pay attention to. The FTC's Mail, Internet, or Telephone Order Merchandise Rule sets forth detailed rules about what marketers must do when they sell products online.

Under the Mail Order Rule, if you make representation about when you're going to ship a product, you must have a reasonable basis for that statement. If you don't tell consumers when you plan to ship, then you must have a reasonable basis for believing that you can ship within thirty days. Then, to oversimply what is a very complicated rule, once you've taken an order, if you learn that