Federal Trade Commision Best Business PracticesReturned Merchandise Authorization : An agreement by the merchant to receive merchandise back and to send the customer a call tag to return the merchandise. Normally, the customer pays the price of the call tag.
Compliance with Federal Trade Commission Rule 435
Compliance with Sec. 435.1 (a) Ordinary Shipment requires:
- Customer to be advised of the promised shipment date of the order on the date order completed.
- Standard and closeout orders are normally shipped within 2 days from the date order completed.
- Custom Orders are shipped within two weeks from date order completed
- Drop ship orders are placed with a wholesaler who can be expected to ship the order within two weeks.
- Custom drop ship orders are placed with a manufacturer that can be expected to fill and ship the order within 30 days.
- If for any reason the promised shipping date of less than 30 days cannot be met for a standard, closeout or drop ship order, the customer will be called back and given the option to:
- Agree to a revised shipment date
- Cancel the order.
- If for any reason the promised shipping date of less than 30 days cannot be met for custom or drop ship custom orders, the customer will be called back and given the option of
- Agree to a revised shipment date.
- Pay a restocking fee and cancel the order.
Compliance with Sec. 435.1 (b) Delayed Shipment
- If for any reason, the revised shipment date for standard, closeout or drop ship orders cannot be met, the customers money will be returned within 30 days from the revised shipment date, unless the customer specifically agrees to a newly revised shipment date.
- If for any reason, the revised shipment date for a custom or custom drop ship order cannot be met and manufacturing of the order has not yet been started, the customers money will be returned within 30 days from the revised shipment date, unless the customer specifically agrees to a newly revised shipment date.
- If for any reason, the revised shipment date for a custom or custom drop ship order cannot be met and manufacturing of the order has already begun, the customers will be contacted and given the option of:
- Agree to a revised shipment date
- Pay a restocking fee and cancel the order.
Federal Trade Commission Best Business Practices
Compliance with Sec. 435.1 (c) Cancellation
- When a customer cancels a standard, closeout or drop ship order before it is shipped, the money paid will be refunded in full within 30 days.
- When a customer cancels a custom or drop ship custom order before manufacturing has started, the money paid will be refunded in full within 30 days of the cancellation.
- When a customer cancels a custom or drop ship custom order after manufacturing has started, the money paid less a restocking fee will be refunded within 30 days.
- When a customer cancels an order after the shipment date, a Return Merchandise Authorization will be issued and the customer will be advised of the amount of the refund.
- When a customer cancels a standard, drop ship or closeout order after the shipment date but less than 7 days after receipt of merchandise, the money paid will be refunded, less shipment and handling cost within 30 days of return date.
- When a customer cancels a custom or drop ship custom order after the shipment date but less than 7 days after receipt of merchandise, the money paid will be refunded less a restocking fee and less shipment and handling cost within 30 days of return date.
- When a customer returns any order more than 7 days after receipt, the money paid will be refunded less a restocking fee and less shipment and handling cost within 30 days of return date.
Compliance with Sec. 435.1 (d) Records
- When a customer is given a promised shipping date of 30 days or less, the invoice will be marked ship promptly.
- Any agreement with customer for a revised shipment date will be recorded on customers invoice.
- Any issuance of a Return Merchandise Authorization and of a return date will be recorded on a copy of customers invoice.
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