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.
Related News
|
 |
|
|
RELATED ARTICLES
Grow your Business with Emarketplace - Part III
Increase Company Productivity
Is Your Business Afraid of the Internet?
My Business is Afraid of the Internet
Choosing the Right Online Shopping Cart
Are you a website owner or a web designer/developer? If either applies, I would venture to say that eventually you'll need an online shopping cart for one of your websites. In fact, almost all new websites today need some sort of ecommerce built-in, for the purpose of selling goods and services in the online marketplace.
Cheap Cigarettes, Discount Tobacco and Cigars Online - Is It Legal?
Many people online today still believe that buying tobacco products via the Internet is an experience that is doomed to failure. Either, the package will go astray, or the HM Customs and Excise storm troopers will smash down the door and abseil from the roof to collect the pennies that they are allegedly due for "tax evasion".
The Five Most Commonly Encountered, Off-putting E-commerce Errors
While getting less public handwringing than during holiday season, the "abandoned shopping cart problem" continues to wreak havoc on online sales. Recently I judged a raftload of sites for the Webby Awards (my second time) and for the Inc. magazine Web Awards, as well as for my own clients. Here are the five irritants and obstacles that most frequently disrupt the visitor's shopping experience at e-commerce sites.
Why Arent People Buying From Your Ecommerce Website?
Your stock is tempting, your prices right - your ecommerce website is good to go, but somehow the customers just aren't buying. So where are you going wrong?
Do You Need A Merchant Account?
Deciding when to get your own merchant account for internet sales can be a confusing and expensive venture. If you have a small to medium sized business and only sell a small amount of products then having your own merchant account may not be the answer for you. Some of the costs involved include.
The Plain Man?s Guide to Making Money Online
I'm a plain man who uses plain thinking in devising strategies for making money online.
The Five Steps of E-Commerce
You set up a retail business, you advertise in your local newspaper, you get customers coming into your store, and you receive payment at the cash register. Create an online store, and...how do you get customers? How do you receive payment?
Ecommerce - Boost Your Business ROI
Did you know that over 90% of all online orders are processed by credit cards and that web sites that offer customers the ability to pay with credit cards can achieve up to 300% more sales than those that do not?
Developing a Winning e-Commerce Strategy
One bright spot on the economic horizons around the world seems to be continued consumer spending and e-commerce is clearly a part of this, with sales estimated to be in excess of $9.9 billion in the next three months according to ACNielsen. But there is a dark cloud hovering over this sunny e-commerce landscape called poor web site design. Let's explore some of the reasons why consumers are not reaching for their credit cards after perusing an e-commerce web site.
How To Start An Internet Business ? Content, Content, Content
When it comes to e-commerce, the time-tested clich is, "Content is king." In this case, the clich is correct.
Your Readers are Publishers Too
Too often we charge ahead and treat the web as if it were just like any other medium. We know it isn't, but somehow we just can't resist retaining complete control of the creation and publication of our website and newsletter content.
Free Competition Analysis for E-Commerce Startup
For anyone who has completed research regarding e-commerce, there are some common catch phrases that we all come across. 'Competition Analysis' is one of those catch phrases. Competition Analysis is part of the business plan. And it is an important part.
Accepting Credit Cards For Your Online Business
Did you know that one of the best ways to increase sales for any online or offline business is to offer your customers the convenience of paying by credit card? As a merchant, you have several options available when it comes to becoming part of the credit card acceptance and processing chain. Here's a quick guide to get you thinking.
Something new in e-commerce: the Echo System Build
How four partners build and manage an exclusive art posters web site by emulating the way the echo works.
Imagine a top-notch photographer, some demanding visitors and an e-commerce site that wants to make money. But not at any price and in any conditions, within a policy of exclusivity and selectivity.
You have got three quarters of our "Echosystem Build":
Shopping Carts and the E-Aisles
Have you ever gone to the store and thought you only needed a few things so you didn't grab a cart? The next thing you know your hands are full and groceries are crashing everywhere making a big mess. If only you had gotten a cart. Shopping carts are not necessary on your website as long as you do not mind doing a little extra work (just like carrying all those groceries) and processing each order individually. If you choose to forego having a shopping cart on your site, it is important to remember you will have to calculate all the taxes and fees yourself. This delay will ultimately kill your sales.
Complementary-Relational Linking and How It Could Save Your Internet Business
The concept of linking is that sites with common interests
should link to drive more traffic to each other's businesses
and to increase their "popularity." Search engines, such as
Google, give much higher ranking to sites with high
popularity. They feel that when many sites are linking to
yours, it's a sign of ranking value.
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 briefly through their minds on he way to work everyday.
5 Tips for Online Shopping
Shopping online has become more and more popular in America as we are all looking to save a little time and money. E-commerce sales are growing at astronomical numbers ranging from 20-25% per year. And according to Forrester Research, 40% of households are using coupons in their web shopping. The huge increases are obvious: the online savings and discounts are impossible to match by traditional stores constrained by the overhead costs of employees, rent, and insurance. By using some of the tips and tricks mentioned below, you'll be able to take further advantage of a new American pastime: saving with online shopping!
|
