FTC Regulation of eCommerce

Online sales are expected to reach $370billion in 2017, and eCommerce in general is increasing in popularity among internet marketers. More and more marketers are setting up eCommerce stores through outlets like Shopify to sell physical products.eCommerce & the FTCIt's no surprise to learn that the Federal Trade Commission is keeping an eye onthe eCommerce industry. One area of interest is thepromises merchants make regarding the time it will take to ship a product once the customer places an order.Because of the explosive growth of eCommerce and the fact that many of the merchants entering the arena are relatively new to selling physical products, the Federal Trade Commission is advising online merchants to review their obligations under the FTC's Mail or Telephone Order Merchandise Rule.Complying With the Mail Or Telephone Order Merchandise RuleRight of the bat many online marketers might be confused by the title of the rule that regulates their eCommerce activities. "The Mail or Telephone Order Merchandise Rule" doesn't sound like it would be applicable to internet business - but it is.There are two primary rules with which you must comply:*.If you specify a time for shipment of the ordered product, then there must be a reasonable basis for your belief that you can ship the product within the time frame you have specified. Even if you don't mention a time frame for shipping the order, you are still required to reasonably believethat you are going to be able to ship the order within 30 days.*.If it turns out that you are unable to ship an orderwithin the time mentioned in your promotional materials or within 30 days if you did not specify a time for shipping, then you are required to notify your customer that the shipment will be delayed, what the revised shipment date is, and you must also alert your customer of his or her right to cancel the order and receive a refund.Here's the kicker. If your shipment of the customer's order is going to be delayed and you notify the customer of that fact as provided above, then for definite delays of no more than 30 days, if your customer fails to respond you may treat that as the customer's agreement to the delay. However, if the order's shipment will be delayed for more than 30 days or for an indefinite time (backorders, etc.), and for all subsequent delays after the first one,you must get the customer's written, electronic or verbal consent to the delay.If you don't receive your customer's actual consentto the extra delay, then you must refund the customer's money whether or not the customer requests it. In other words, the burden is on you as the merchant to be sure the refund is made.Robert L. "Bob" Page is a licensed attorney with an undergraduate degree in electrical engineering. He is the author of theKindle Book,Starting a Business: How Not To Get Sued By the FTCand he operatesAffiliate Business Advisor, a website providing guidance to digital entrepreneurs.Article Source:http://EzineArticles.com/expert/Robert_L._Page,_JD/32457