FTC Issues Staff Report on Proposed Revisions to Mail or Telephone Order Merchandise Rule
On Monday, the FTC released a Staff Report on the Mail or Telephone Order Merchandise Rule recommending that the Commission adopt the amendments in the Notice of Proposed Rulemaking issued on September 30, 2011. The Staff specifically recommended the following four amendments to the Rule:
- Require sellers to process third-party credit card refunds within 7 business days after the buyer’s right to the refund vests.
- Clarify the refund obligations for orders placed using non-enumerated payment methods (e.g., debit cards) by: (1) setting shipment and notification requirements for non-enumerated payments; and (2) requiring sellers to make prompt refunds for non-enumerated payments by either reversing the payment or sending, cash, check, or money order within 7 business days.
- Permit refunds and refund notices by any means at least as fast and reliable as first class mail.
- Clarify that the Rule covers all Internet merchandise, regardless of Internet access method.
The Report will remain open for public comment until July 15, 2013. Companies offering products online or by mail should continue to watch these developments.
Tags: Federal Trade Commission