With the increase in the number of consumers online, the U.S. Federal Trade Commission has conducted its annual search of Web retail sites and has issued some warnings. Out of 51 Web retail sites visited, the FTC has issued 37 letters warning of potential violations of consumer protection laws. The following concerns in connection with product warranties, shipping claims, country of origin and rebates were the subject of the FTC warnings:
Warranties - warranties on products costing more than $15 must be available in writing through retail Websites, either by providing the text of the warranty, providing hyperlinks that are clearly and properly labelled, or by providing a general statement stating that the warranty could be obtained free upon request.
Shipping claims - orders must be shipped to buyers within a specified time or if no time is specified, within 30 days after receiving order. If e-tailers are unable to ship the goods within the promised time, they must notify the customers and provide them with the option to cancel their purchase.
Country of origin - most textile products sold to consumers require a country of origin disclosure in the product information stating whether the product is "made in USA", imported or both.
Rebates - rebates must be sent to consumers within a reasonable time or within the time promised by the retailer. Websites offering rebates must disclose the following information in a clear and prominent manner: (i) the type of rebate offered, (ii) the material terms of the rebate, and (iii) the total price consumers must pay at the time of purchase to receive the rebate.
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