The Mail or Telephone Order Rule (MTO Rule) is a regulation from the Federal Trade Commission (FTC) that sets standards for the commerce of goods over the phone or through mail order. The rule was created to protect consumers who purchase products through the mail or by phone by assuring they receive a fair deal. The MTO Rule requires sellers to promptly ship items purchased and not accept payment until a buyer receives the order.
The purpose of the MTO Rule is to ensure that goods are delivered in the condition they were represented as at the time of purchase. The MTO Rule covers items such as food, clothing, appliances, and jewelry purchased through mail-order or over the phone. It specifies that a seller must provide a buyer with written product information and description, including the size, weight, color, and description of the item, its price, the method of payment, a delivery date, and any warranties or guarantees that come with the product.
The MTO Rule also states that sellers must allow buyers to return goods if they are not as described in the purchase agreement or if they are defective. In addition, sellers must obtain written consent from the buyer before billing for items that have not been shipped. This protects the consumer from being charged for items they do not receive.
In today’s digital age, the MTO Rule still applies to vendors who sell products on websites, through out-of-state merchants, or even overseas. This rule is meant to guarantee fair trade and a level of trust between sellers and buyers. If sellers follow this regulation, they will not only have satisfied customers, but also avoid fines should the FTC decide to prosecute.