FTC’s Mail Order Rule Crackdown Continues

Kelley Drye & Warren LLP

Last week the FTC filed suits against three online merchandisers regarding their alleged failures to promptly deliver personal protective equipment (PPE) to consumers. The lawsuits allege that three online sellers violated the FTC’s Mail Order Rule, which mandates that companies notify consumers of shipping delays in a timely manner and give them the option to cancel orders and receive prompt refunds.

According to the FTC’s complaint, QYK Brands and Jacqueline Thao Nguyen allegedly promoted products such as hand sanitizer, masks, face shields, and other COVID-related products as “in stock” and available for same-day shipping. The defendants allegedly created USPS shipping labels directly after receiving orders, but delaying shipment for several weeks.

In its complaint against Zaappaaz, Inc, the FTC alleges that wrist-band.com “guaranteed” same day shipping of COVID-related products, but took weeks to ship orders and failed to inform consumers of delays. The complaint also cites multiple instances of incorrect or defective products received by consumers for which the company denied refeeds, as well as un-kept promises of refunds to consumers who never received their purchased products.

The FTC also alleges that American Screening, LLC, Ron Kilgarlin Jr., and Shawn Kilgarlin violated the Mail Order Rule by stating that PPE products would be shipped “within 24-48 hours,” when many items were not shipped until weeks or months later.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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