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A.  MAIL FRAUD AND UNORDERED MERCHANDISE

The purpose of the Federal Trade Commission Mail-Order Merchandise Rule is to protect mail-order customers. According to this rule, companies that sell by mail or telephone must ship the order within 30 days of the time they receive the order. The only exceptions are if the company clearly states a longer period of delivery in its solicitation or if you do not send sufficient information (an incomplete address or payment).

If the company cannot ship your order within the advertised time, it must inform you in writing of the delay. It must also allow you to cancel if you do not agree to the delay. The company must then refund your money within seven days of receiving your request. If you paid by check or money order, your refund is a check. If you paid by credit card, you receive written notification of cancellation of the charge from your account. An advantage of paying by credit card is that your card issuer can withhold money if notified soon enough-that is, from 30 to 90 days, depending on the bank or credit company involved. The Mail-Order Merchandise Rule does not apply to COD purchases or serial delivery such as magazine subscriptions, although it does apply to the initial delivery.

If you do not respond to the notice of delay, the company has another 30 days to ship the merchandise. It may not delay shipment beyond the additional 30 days without your consent.

It is a violation of the Federal Trade Commission Act to send unordered merchandise through the mail unless it is a free sample marked as such or is sent by a charitable organization asking for, but not requiring, a contribution. Most states treat unordered merchandise as a gift. Persons sending unordered merchandise through the mail are prohibited from demanding payment, and you have the right to keep the goods or to dispose of the goods in any manner you wish. Moreover, billing for unordered merchandise may constitute mail fraud and/or misrepresentation.

Federal law also protects you if you accidentally order merchandise (you sign your name to accept receipt of samples of a product or you accept an unwanted package because of misleading language). You can return it without charge.

If you receive unordered merchandise that you find offensive or especially annoying, contact your local postmaster, the chief postal inspector in Washington, D.C., or the Federal Trade Commission in Washington, D.C. The FTC has nationwide Jurisdiction over deceptive, unfair marketing practices. However, it does not usually get involved in individual disputes or "annoyance mail." The postal service is the appropriate agency to contact if the material you are receiving is explicitly sexual and sent to minors or if it is not so labeled.

In situations involving defective merchandise where there is a pattern of complaints about a company, the FTC can intercede to compel the return of all customers' money or fulfillment of their orders. It is also a good idea to contact your local Better Business Bureau to seek redress.

The same rules apply when receiving substituted merchandise: A seller may not send you substituted merchandise without your consent. And if you are not satisfied with your substitute merchandise, you are entitled to a refund. Mail-order merchants must issue refunds within 30 days of receiving your refund request and returned goods.

if you want to stop receiving unsolicited advertising mail, catalogs, and brochures, contact the Direct Mail Marketing Association, 6 East 43d Street, New York, N.Y. 10017. This organization can remove your name from the mailing lists of its members and stop delivery of most sweepstakes, contest offers, samples, coupons, and catalogs.

Most book and record clubs operate on "negative options." You receive an announcement describing the next item to be shipped. The item is shipped automatically and you are billed for it unless you notify the company by a certain time that you do not want the merchandise. Under the FTC's rules, before shipping a selection the seller must send you an announcement 1 identifying the selection and a form telling you the selection will be shipped unless you say no. The form must give either a date by which you must mail back the form or by which the form must be received by the seller. The seller must give you at least 10 days to mail back the form, and allow you to return, at its expense and for a full credit, any shipment you receive by mistake.

Never join a plan that fails to disclose clearly your rights under the FTC rule. Insist that the seller provide, and that you understand: complete terms of the negative option plan and how to use it; any minimum purchase required to qualify as a member; the policy for postage and handling charges; the minimum number of items you must purchase to complete the plan; your right to cancel at any time; and how annual or periodic announcements will be sent to you and when. Finally, the same rules apply with respect to unordered merchandise as discussed above. If you terminate your membership but are then sent unordered merchandise, you may usually keep it at no cost.

A magazine advertisement states it will provide consumers with original, hard-to-find recordings of many popular big bands and vocalists in tape, album, or CD form. Following the directions in the ad, Stacey sent a $19.95 money order. Three weeks later she received an album with barely audible outtakes. There is little Stacey can do because (1) no promise of quality was mentioned in the ad, (2) no money back guarantee was offered, and (3) the company used a post-office box address that is no longer being used and cannot be traced to the principals of the operation.

 

1.  Comparison shop. Find out if the merchandise is available from another mail-order source.

2.  Check the advertising claims. Are they too good to be true? Check the description of the product and keep a copy of the ad or catalog from which you ordered.

3.  Find out if there is a warranty. Does it offer your money back if you're not satisfied?

4.  Check the time limit on delivery. Mail-order transactions must be shipped within the time stated in the company's printed or broadcast offer. If no time is stated, shipment must be within 30 days after the company receives the order, unless you agree to a delay.

5.  Ask for a more detailed description of the product or its guarantee if you have doubts.

6.  Make sure your name and address are clearly marked on the order form. If you are ordering a gift, be sure that the name and address of the person to whom you are sending it is legible.

7.  Keep a copy of your order form and any letters you send to the company. Make sure you have the company's correct address.

8.  Never send cash. Pay by check or money order. Be sure to include extra charges, shipping, handling, and sales tax.

9.  Check the order immediately when you receive it. If it is expensive, check it before accepting delivery. If it is not what you ordered, do not accept it, and have it returned to sender. Notify the company in writing and keep a copy of your letter-

10.  Contact your local postmaster or chief postal inspector if you have been victimized. The inspection service of the U.S. Postal Service, headed by the chief postal inspector, is the law enforcement and audit arm of the postal service. This office performs security, law enforcement, and audit functions. It is responsible for investigating potential violations. Direct any grievance to their attention (see Figure 5.1).

For more information on mail orders, write to the Federal Trade Commission, Washington, D. C 20580, for a free copy of "Shopping by Mail.