Retailer mailings3/19/2023 ![]() "Reasonable basis" means that the merchant has, at the time of making the representation, such information as would under the circumstances satisfy a reasonable and prudent businessperson, acting in good faith, that the representation is true. You also must have a reasonable basis for the updated shipment representation. ![]() The updated shipment information you provide on the telephone or the Internet supersedes any shipment representation you made in the advertising. ![]() This may differ from what you said or implied about the shipment time in your advertising. When you take orders by telephone, or the Internet, you may choose to provide prospective customers with updated shipment information. any representation that you do not know when you can ship the merchandise.Whenever you change the shipment date by providing a delay notice, you must have a "reasonable basis" for: believing you can ship within 30 days of receipt of an order - if you make no shipment representation or if the shipment representation is not clear and conspicuous.any express or implied shipment representation, or.When you offer to sell merchandise, you must have a "reasonable basis" for: What You Should Know Before You Make a Shipment Representation The following information will help you comply with the Rule. If you cannot obtain the customer’s consent to the delay - either because it is not a situation in which you are permitted to treat the customer’s silence as consent and the customer has not expressly consented to the delay, or because the customer has expressly refused to consent - you must, without being asked, promptly refund all the money the customer paid you for the unshipped merchandise. If, after taking the customer’s order, you learn that you cannot ship within the time you stated or within 30 days, you must seek the customer’s consent to the delayed shipment. That is why direct marketers sometimes call this the "30-day Rule." If you make no shipment statement, you must have a reasonable basis for believing that you can ship within 30 days. The Rule requires that when you advertise merchandise, you must have a reasonable basis for stating or implying that you can ship within a certain time. What is the Mail, Internet, or Telephone Order Rule? It does not matter how the merchandise is advertised, how the customer pays, or who initiates the contact. ![]() It applies to most goods a customer orders from the seller by mail, telephone, fax, or on the Internet. The Rule itself is reprinted at the end of this booklet. This discussion is followed by a question and answer section. The Rule’s requirements are explained in plain English. To help you plan and operate your business, the Federal Trade Commission ("FTC") staff in cooperation with the Direct Marketing Association (DMA) has prepared this booklet about the FTC’s Mail, Internet, or Telephone Order Merchandise Trade Regulation Rule (the "Rule").
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