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October 18th, 2011
FTC Seeks Public Comment on Mail or Telephone Order Merchandise Rule
As part of the Federal Trade Commission’s ("FTC") systematic review of its rules and guides, the FTC has announced that it intends to retain the "Mail or Telephone Order Merchandise Rule" (the "Rule"), but with certain proposed amendments in order to keep up with current technology and business practices. The Rule, first issued over 35 years ago, requires, among other things, marketers to ship merchandise within the time frame advertised or (if no time frame is specified) within 30 days. The Rule also requires that when a marketer cannot ship within the proper timeframe, the marketer must obtain the buyer’s consent to a delay in shipping or refund payment for unshipped merchandise.
By amending the Rule, the FTC seeks to accomplish four main objectives:
- Expand the Rule so that it covers Internet orders regardless of whether the buyer accesses the Internet through a telephone line;
- Revise the Rule to allow marketers to provide refunds and refund notices to buyers by any means at least as fast and reliable as first class mail;
- Explain marketers’ obligations under the Rule when payment is made using methods not specified in the Rule, such as through the use of debit cards and prepaid gift cards; and
- Require that marketers make refunds within seven business days for purchases made using third party credit cards.
Written comments regarding the proposed amendments must be submitted by December 14, 2011. Because the FTC does not plan to hold a workshop on the proposed revisions, parties interested in presenting views orally should also submit a request to do so before December 14, 2011. Written comments can be sent to: FTC, Office of the Secretary, Room H-113 (Annex N), 600 Pennsylvania Ave., N.W., Washington, DC 20580.
If you have any questions about the FTC's proposed amendments, please contact Jeffrey A. Greenbaum at (212) 826-5525 or jgreenbaum@fkks.com, or any other member of the Frankfurt Kurnit Advertising Group.
Other Advertising Law Alerts
What the Advertising Industry Can Learn from Kim Kardashian’s Settlement with the SEC
On October 3, 2022, the Securities and Exchange Commission (SEC) announced that it entered into a $1.26 million settlement with Kim Kardashian over her social media promotion of the EMAX token without disclosing payment she received from token issuer, EthereumMax. The matter provides important lessons for advertisers. Read more.
October 10 2022
Get Ready for California’s New “Automatic Renewal” Rules
California recently amended its Automatic Purchase Renewals law. The amended statute - effective July 1st -- require marketers to provide consumers of automatic renewal or continuous service offers with more information and easier ways to terminate. Read more.
June 22 2018
“Made in the U.S.A.” Claims Continue to be Scrutinized
In 2016, California amended Section 17533.7 of the California Business and Professions Code ("Section 17533"), liberalizing the standard for selling products labeled "Made in U.S.A" to California consumers. Read more.
June 4 2018
