Keep Uncle Sam at Bay

When you take an order by phone, any shipment information you say or imply supercedes the representation made in printed advertising material or your catalog. Caution: If an item is on backorder, and you don’t know exactly when it’ll arrive—but you tell customers it will arrive and be shipped to them in two weeks—this is now your expressed representation about the ship date to your customer. If you can’t meet this two-week representation, and you don’t notify the customer, you’re in violation of the mail order merchandise rule.

Likewise, if you have a firm date for replenishment and you tell a customer the item will ship on that day, you must ship on that day or notify the customer otherwise. The 30-day rule is in effect only when you do not make a specific representation on the ship date.

Therefore, your phone reps should tell customers the item is on backorder, and you expect to get more product by a certain date. However, state that you will contact customers again only if the items have not shipped within 30 days. Then you haven’t promised anything that requires additional notification beyond the 30-day rule.

If you can’t ship within the 30-day period or on the date you represented (on the phone or in your marketing materials), you must notify customers. You can do this by phone or mail, but you must do it within a few days of learning that you won’t meet the commitment. In your first delay-option notice, give a definite revised ship date, or state that you’re unable to give a definite date. The notice also must include a statement noting that if the customer does not want to wait, he or she can cancel the order and get a full and prompt refund. The customer must be able to notify you of this at your expense (e.g., postage-paid card, toll-free number).