Legal Definitions - mail or telephone order rule

The Mail or Telephone Order Rule is a legal regulation established by the Federal Trade Commission (FTC) that prohibits sellers from soliciting sales orders by mail or telephone unless they reasonably expect to ship the ordered merchandise by the date included on the solicitation or within 30 days if there is no such date.

For instance, if a company sends a catalog to a customer and the catalog includes a product that the customer wants to purchase, the company cannot accept the order unless it can reasonably expect to ship the product within the specified time frame.

The rule also requires sellers to notify buyers of any shipment delays beyond the stipulated period and obtain their consent for the delay. If the buyer does not consent, the seller must issue a prompt refund to the buyer.

For example, if a customer orders a product and the seller cannot ship it within the specified time frame, the seller must inform the customer of the delay and obtain their consent. If the customer does not agree to the delay, the seller must issue a refund promptly.

In 2014, the FTC expanded the scope of the Mail or Telephone Order Rule to include internet orders and transactions. This means that the same regulations apply to online purchases as well.