|
|
NEWS
RECALLS
COMPLAINT FORM
SCAM ALERTS
RESOURCES
Small Claims Guide Class Actions Lemon Laws FAQ Newsletters |
Share |
| Automotive Education Employment Electronics Family Finance Health Homeowners Insurance Pets Shopping Travel |
|
|
|
![]() |
Internet Tire Store Must Re-Inflate Consumers' Wallets |
|||
|
October 2, 2002 The consent decree would resolve FTC allegations that Dynamic and Jerjerian violated the FTC's Mail or Telephone Order Merchandise Rule by charging consumers a 20 percent "restocking fee" after consumers cancelled their telephone orders because of delayed shipments, or after consumers refused to pay inflated prices for their completed orders and the company decided not to ship at all. The order requires Dynamic and Jerjerian to pay consumers the difference between what they paid and the amount that Dynamic already has refunded to them, and requires them to comply with the Rule in the future. According to the complaint, Dynamic and Jerjerian violated the Mail Order Rule by making unsubstantiated shipment representations, failing to provide delay option notices in delayed shipment situations, and failing to make full refunds to consumers when the Rule so required. "Merchants who fail to meet their shipping promises must offer their consumers a full refund," said FTC Bureau of Consumer Protection Director J. Howard Beales, III. "This case demonstrates that consumers who are looking for deals on wheels don't have to deal with inflated prices and a lot of hot air." According to the FTC, Dynamic advertised fancy automobile wheels, rims, and tires in magazines and on the Internet, providing a phone number consumers could call to place their orders. Although Dynamic's advertising stated, "Prices subject to change without notice," and "All returns or cancellations are subject to a 20 percent restocking fee," Dynamic's representatives told consumers responding to the ads that the merchandise was in stock at stated prices and that the company would ship the orders in time for delivery within seven to 10 business days. In fact, the complaint alleges that they often did not have the goods in stock and when they made these representations, and so they lacked any reasonable basis for their shipment representations. Moreover, the complaint alleges that when Dynamic failed to ship the merchandise in the promised time, it also failed to send the consumer a notice of delay containing a revised shipment date and the option to cancel the order and obtain a prompt and full refund, as the Rule requires. Having failed to provide the delay option notice in time, the Rule requires that the merchant automatically cancel the order and send the consumer a full and prompt refund. Instead, when consumers cancelled the unshipped orders because of the delay, the complaint alleges that the company refunded what the consumers paid less 20 percent of the sale price as a "restocking" fee. In addition, the FTC alleged, in some cases, after accepting the consumers' properly completed orders, which included payment in the stated amounts, the company told the consumers that it would not ship the merchandise unless the consumers paid more than the stated amounts. The complaint alleges that when the consumers refused to pay more than they originally agreed to pay, the company cancelled their orders. Whenever a merchant decides not to ship a properly completed mail or telephone order, the Rule requires the merchant to cancel the order and make a full and prompt refund. Instead, Dynamic allegedly discounted their refunds 20 percent of the sale price as a "restocking" fee. |
|||
Back to the top | |
||||
Advertisement
|
|
Custom Search
|
||||
|
AUTOMOTIVE Dealers Manufacturers Service Extended Warranties Lemon Laws Recalls Tires Transporters FAMILY Aging Children, Parenting Recalls Dating Education Entertainment Pets Weddings |
FINANCE Annuities Banks Credit Cards Debt Collection Debt Counseling Insurance Investing Loans Mortgages Payday Loans Student Loans Tax Prep HEALTH Doctors Drugs, Pharmacies Health Clubs Hearing Care Hospitals Nursing Homes Nutrition, Diets Vision Care Weight Loss |
HOUSE & HOME Appliances Cookware Furniture Home Improvements Lawn & Garden Movers Pools & Spas Realtors, Rental Agents Recalls Utilities ELECTRONICS Cable TV/DBS Cameras Cell Phones Computers Home Electronics Internet Access Local Phone Service Long Distance VoIP |
SHOPPING In-Home Online Retail Stores Sporting Goods Supermarkets Telemarketers TRAVEL Airlines Bus Lines Car Rental Cruises Hotels Travel Agents Trains RESOURCES Class Actions Complaint Form Small Claims Guide Lemon Laws |
CONSUMER NEWS Latest News Automotive Telecom Financial Health Homeowners Scams Seniors Travel More ... RECALLS Automotive Children's Products Drugs Food Household Products Sporting Goods ABOUT US FAQ Privacy Policy Advertise With Us Newsroom Syndication Terms of Use |
Terms of Use Your use of this site constitutes acceptance of the Terms of Use
Copyright © 2003-2009 ConsumerAffairs.com Inc. All Rights Reserved. The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission. |
|