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.

____________________

Advertisement: Honest Riches - Click Here!

Advertisement: Lost AdWords - Click Here!

Advertisement: Get $1 Million A Month In Google Pay-Per-Click Ads Free! - Click Here!

Advertisement: Who Loves Money? - Click Here!

Advertisement: SEO Elite, the GrandDaddy of SEO Software - Click Here!

---

Choosing on Order Fulfillment Service

When your eCommerce business grows to the point where you can no longer package and ship the orders yourself, it's time to begin outsourcing your order fulfillment.... Read More

Intranet Project Names - Some Ideas

"What's in a name? That which we call a rose By any other word would smell as sweet."In this famous quote from Act II of Romeo and... Read More

10 Reasons To Survey Your Visitors, Subscribers And Customers

1. To find out what type of content visitors want to see on your web site. This should increase repeat visits to your site.2. To find out... Read More

The Census and the E-Commerce Wave

Understanding business and product sales can sometimes put me in a whirlwind. My job tends to get me involved with loads of different opportunities dealing with all... Read More

Evaluating Vendors of Ecommerce Fulfillment Services

Once your website has secured an order, you have to fulfill it. While the fulfillment of digital goods is usually handled online, the delivery of physical goods... Read More

Is ECommerce Right for Our Business?

If your business features products or services for sale, undoubtedly the topic of eCommerce has come up. What is eCommerce? Literally defined as "the conduct of financial... Read More

Effective Management Of Your Customer Services

With a third party merchant account you will have a dedicated 24/7 support team to handle your credit card payment on your behalf as part of your... Read More

Online Shopping: Legal Challenges for Taxing Authorities

E-commerce offers customers the chance to eliminate many stages in the sales/distribution chain. The mark-ups that occur between manufacturers, wholesalers, distributors, retailers and consumers can add the... Read More

How To Find the Best Merchant Account For Your Business

What a great idea! Start accepting credit cards and watch your profits soar. Nothing could be simpler. Or so you thought until you began researching merchant accounts.... Read More

Using Drop Shipping for E-commerce

Thanks to the ubiquity of the internet, online virtual businesses have become very popular business opportunities. Online retail stores are gradually playing a more important role in... Read More

Web Users Crave Familiarity

The sad truth is, general Web users would love it if all our sites looked like Amazon.com.They'd immediately be familiar with the interface, they would know how... Read More

Helping Your Visitors: a State of Mind

What does "helping your visitors" mean exactly?It means writing your sites, newsletters and emails in such a way as to help each visitor achieve his or her... Read More

Working With Drop Shippers

Drop Shippers, the manufacturers or distributors who are willing to ship their products to your customers, bring a powerful benefit to ecommerce. Online businesses that engage in... Read More

Excuse Me, Are You Wasting Traffic?

The largest cost and concern of an internet business is customer acquisition; traffic. Both quantity and quality of traffic directly determines the succes of an internet business.... Read More

Top Ten Qualities to Look for in an Online Pharmacy

As you may have noted, there are thousands or even hundreds of thousands of websites selling pharmaceutical products or drugs. These are called ONLINE PHARMACIES or PHARMACIES... Read More

Selling From Your Website

Greetings!Friends and relitives ask us all the time " How do sell from your website?" and no doubt you want to know as well. Over the next... Read More

How to Start a Business on the Internet

So you want to start a business? Good for you. Really, I mean that sincerely. I think about the millions of people that let the thought pass... Read More

Retirement Signature Frames ? The Perfect Retirement Gift!

When most people think of a retirement gift, they think of a watch. It's the tried and true gift that companies give employees to say thanks for... Read More

Guide To Safe Online Shopping

Online shopping can be a little frightening to people who are new to the internet,but as long as you follow a few easy rules you should have... Read More

Choosing an Ecommerce Shopping Cart

Choosing an online shopping cart is a big decision. Unlike a traditional brick and mortar business, your website is your only chance to impress potential customers. It... Read More

Shopping Cart Usability

Usable Shopping Carts Increase SalesE-commerce has been around since 1993 under many different names, but one thing remains constant; shoppers want usable web sites. Without a usable... Read More

Is Your Website Credit Card Friendly?

In my last column I discussed the process of credit card enabling your brick-and-mortar business. I pointed out that research has shown that accepting credit cards can... Read More

Selling Globally Through a B2B Exchange

Participation in B2B Exchanges is increasingly becoming one of the fastest growing marketing methods for businesses looking for augmenting their client base beyond their local markets. Any... Read More

eCommerce, How Much Does It cost?

Making profits with your existing website design or creating a new online store can be exciting, affordable and most of all; rewarding. Mmmm . . . that's... Read More

Mr and Mrs Smith Go Online, as Internet Technology Moves from Fantasy to Normality

According to NOP World, 48% of all Internet users have researched or purchased financial products such as insurance and loans on the internet, or used online banking... Read More

Credit Card Processing - 7 Things You Need to Know Before Opening an Online Merchant Account

When considering opening an online merchant account to accept credit card orders, there are a lot of things you need to keep in mind. The best thing... Read More