FTC Mail Order Rule
FTC Mail Order Rule, formally the Mail, Internet, or Telephone Order Merchandise Rule, is the FTC regulation adopted in 1975 that requires sellers to ship orders within the promised time or offer customers the choice to cancel.
What it requires
Sellers must have a reasonable basis for any shipping time they state, or ship within 30 days if none is stated (50 days if the seller extends credit for the purchase). If a delay occurs, they must notify the buyer with a revised date and an option to cancel, and refund promptly: within seven working days for cash or check payments, or one billing cycle for credit card orders. Each violation can bring a civil penalty of up to $53,088.
Why it matters
The rule turns the shipping promise shown at checkout into a legal obligation, so fulfillment performance is a compliance issue, not only a service metric. If a 3PL backlog pushes orders past the stated ship date, the seller must send delay notices offering cancellation and refund those who cancel. For example, during a peak season backlog, a brand promising same-day shipping must notify affected customers and honor refunds. Accurate cutoff times and inventory status on the storefront reduce exposure.
Related laws
Sources
Not legal advice.