What a First Delay Option Notice Must Say according to the Mail, Internet, or Telephone Order Merchandise Rule

What a First Delay Option Notice Must Say according to the Mail, Internet, or Telephone Order Merchandise Rule

In seeking your customer’s consent to delay, the first delay notice you provide to the customer (the "delay option" notice) must include:

•       a definite revised shipment date or, if unknown, a statement that you are unable to provide a revised shipment date;

•       a statement that, if the customer chooses not to wait, the customer can cancel the order and obtain a full and prompt refund; and

•       some means for the customer to choose to cancel at your expense (e.g., by providing a postage prepaid reply card or toll-free telephone number).

•       the following information when you cannot provide a revised shipping date:

o   the reason for the delay, and

o   a statement that, if the customer agrees to the indefinite delay, the customer may cancel the order any time until you ship the merchandise.

If your first delay option notice provides a definite revised shipping date of 30 days or less, you must inform customers that their non-response will be treated as a consent to the delay.

Thus, your delay option notice might look something like this:

We will be unable to ship the merchandise listed above until [date 30 days or less later than original promised time]. If you don’t want to wait, you may cancel your order and receive a prompt refund by calling our toll-free customer service number, (800) 555-1234. If we do not hear from you before we ship the merchandise to you, we will assume that you have agreed to this shipment delay.

(Many merchants add clarifying language such as "Remember, if you want the merchandise, don’t call.")

If your first delay option notice provides a definite revised shipping date of more than 30 days or states that you do not know when you will be able to ship, you must tell your customers that if they do not respond, the order will be cancelled automatically within the originally promised time plus 30 days.

For example, suppose you have a reasonable basis for being able to ship in 30 days and you have chosen to make no shipment representation in your advertising. Within the 30 day period after you receive the customer’s properly completed order you learn that you cannot ship in time and, although you believe you will be able to ship at some point, you don’t know when. Your delay option notice to the customer might look something like this:

Because [explanation of backorder problem], we are unable to ship the merchandise listed above. We don’t know when we will be able to ship it.

If you don’t want to wait, you may cancel your order and receive a prompt refund by calling our toll-free customer service number, (800) 555-1234. If we do not hear from you and we have not shipped by [date 30 days later than original promised shipment time -- in this example, 60 days after receipt of the properly completed order], your order will be cancelled automatically and your money will be refunded.

If you do not want your order automatically cancelled on [date 30 days later than original promised shipment time], you may request that we keep your order and fill it later. If you do request that we keep your order and fill it later, you still have the right to cancel the order at any time before we ship it to you. You may use our toll-free number, (800) 555-1234, either to request that we fill your order later or to cancel it.

Remember: You are required to explain the nature of the backorder problem only if you provide an indefinite revised shipment date. This explanation should be detailed enough to permit the customer to judge what the possible length of the delay might be.

You also have the option of seeking your customer’s affirmative agreement to the delay. In any event, you must indicate what will happen if the customer does not respond.

 

For more information, see here:  http://business.ftc.gov/documents/bus02-business-guide-mail-and-telephone-order-merchandise-rule

 

These materials were obtained directly from the Federal Government public website and are posted here for your review and reference only.  No Claim to Original U.S. Government Works.  This may not be the most recent version.  The U.S. Government may have more current information.  We make no guarantees or warranties about the accuracy or completeness of this information, or the information linked to.  Please check the linked sources directly.