What Rules must a Company Follow if it Sells Products via Mail Order?
Truth-in-advertising standards - including that companies must have proof to back up express and implied claims made about its products - apply to mail order marketers. In addition, the FTC's Mail or Telephone Order Merchandise Rule ("Mail Order Rule") applies when a consumer places an order by mail, telephone, fax, or computer. Under the Rule, a company must have a reasonable basis for believing that it can ship the product within the time period stated in the ad. If the ad doesn't specify a time period, the company must have a reasonable basis for believing that it can ship within 30 days. The Mail Order Rule applies equally to online marketers. For more information, ask the FTC for A Business Guide to the Federal Trade Commission's Mail or Telephone Order Merchandise Rule and A Business Checklist for Direct Marketers. Companies that advertise online also should get a copy of Selling on the Internet: Prompt Delivery Rules. In addition, the Direct Marketing Association, a trade group for members of the direct marketing industry, has voluntary guidelines on ethical business practices.
For more information, see here: http://business.ftc.gov/documents/bus35-advertising-faqs-guide-small-business
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