Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC Staff Recommends Adoption of Proposed Amendments to Mail or Telephone Order Merchandise Rule , (Apr 29, 2013)
By Tobias J. Gillett, J.D., LL.M.
The FTC’s staff has issued for public comment a report on the FTC’s proposed amendments to its Mail or Telephone Order Merchandise Rule, as part of its systematic review of all FTC rules and guides, the agency has announced.
The Mail or Telephone Order Merchandise Rule requires sellers of merchandise who solicit customers by mail or by telephone to have reasonable grounds to expect that they can deliver the products within the time frame they advertise, or within 30 days if no time frame is specified. Under the Rule, a seller must obtain permission from the buyer to deliver outside the time frame, or refund the payment for the unshipped merchandise.
In their report, the FTC’s staff recommends adopting amendments to the Rule that would:
Clarify that it covers all Internet merchandise orders, regardless of the method consumers use to access the Internet;
Permit refunds and refund notices by any means at least as fast and reliable as first class mail;
Clarify sellers’ refund obligations for orders using payment methods not specifically enumerated in the Rule; and
Require sellers to process any third party credit card refunds within seven working days of a buyer’s right to a refund vesting. The refund deadline would remain one billing cycle for purchases where the seller is the creditor.
The FTC first sought public comment on possible changes to the Rule in 2007, and issued its proposed amendments to the Rule in October 2011. The staff report analyzes and responds to comments received on the proposed amendments, and recommends adopting them as proposed in the FTC’s Notice of Proposed Rulemaking.
The FTC seeks public comments on the report, which must be received by July 15, 2013. Further information on the Rule and compliance with it can be found in the FTC publication A Business Guide to the FTC’s Mail or Telephone Order Merchandise Rule.
News: ConsumerProtection FederalTradeCommissionNews