The Federal Trade Commission (FTC) is warning online holiday shoppers to be wary of Internet retailers making "quick-ship" claims of shipping goods within 24 to 48 hours of order placement. Consumers should also watch out for deceptive online warranty and rebate claims.

During the 1999 holiday season, many Internet retailers, or "e-tailers," claimed they could ship extremely quickly, from "overnight" to 48 hours to 72 hours. Unfortunately, some were unable to ship when they said they would, and the FTC brought civil penalty actions against seven well-known e-tailers. The companies paid more than $1.5 million to total penalties. During the 2000 and 2001 holiday seasons, the FTC reported fewer problems and fewer e-tailers making "quick-ship" claims.

Problem could be growing again in 2002
In a recent test "surf" of the Websites of 63 e-tailers offering top-selling holiday items, the FTC found 51 sites assured consumers that in-stock items usually ship within 24 to 48 hours after an order is placed, or stated that orders received before a certain time of day would be shipped that night.

In announcing the surf results, Howard Beales, Director of the FTC's Bureau of Consumer Protection, said, "As consumers turn to the Internet to shop for holiday purchases, we want to be sure that they get what they expect, when they expect it."

FTC warns online shopping Websites
As a result of the surf, the FTC staff sent letters to 51 e-tailers stating, "We want to make certain that you know that online sales are governed by many of the FTC-enforced statutes and regulations that apply to other forms of marketing and advertising."

The letters remind e-tailers that if they are unable to ship, for example, within a promised "48 hour" period, they must notify their customers within that period and give them the option to cancel.

What are the rules on shipping? 
Online shipment claims made by e-tailers are governed by the FTC's Mail or Telephone Order Rule, which requires:

• Sellers must ship orders to buyers within the time stated in the ad, or, if no time is stated, within 30 days after receiving the order. 
  
  
• If the seller is unable to ship within the applicable time, the seller must notify the customer of the delay within the original shipment time and give the buyer a revised shipping date. 

What are your rights?
In the event the seller is unable to ship ordered goods within the promised time period, the seller must notify the customer within that time period and offer the customer the option to cancel the order.

Watch our for warranty claims
The FTC has also sent warning letters to 14 e-tailer Websites found to be selling warranted products without providing adequate information about these warranties. 

The FTC's Pre-Sale Availability Rule requires that written warranties on consumer products costing more than $15 be made available to consumers before they buy, and specifies what retailers, including mail order and catalog sellers, must do to accomplish this. Basically, e-tailers' Websites must display either the full text of written warranties or a general statement that warranties could be obtained free upon request and an address where the warranty can be acquired. Warranty information must be placed near the product description, or be located clearly and conspicuously in a separate information section on the website. It is not sufficient for sites to summarize simply the terms of a manufacturer's warranty.

Rebate offers can also be traps
Consumers shopping online should also be alert to two deceptive mail-in rebate practices identified by the FTC. Those practices are:

• deceptively advertising the total costs of computer systems by failing to inform consumers adequately of the before-rebate price and that consumers had to sign a contract for three years of Internet service to qualify for the rebate;
  
  
• misrepresenting of the time in which cash rebates would be mailed and/or unilaterally changing of the terms of rebate programs after they had already begun (e.g., by rejecting rebate coupons that did not include the consumer's phone number, fax number, or email address).

Under FTC rules, e-tailers' Websites must "clearly and prominently" display the following information about any rebate offers:

1. the type of rebate offered (in-store or mail-in);
2. the material terms of the rebate offer; and
3. the total price consumers must pay at the time of purchase to receive the rebate. 

How to file consumer complaints
Consumers wishing to file complaints about a particular company or organization should use the online FTC Complaint Form located at: https://rn.ftc.gov/dod/wsolcq$.startup?Z_ORG_CODE=PU01

Identity Theft? 
Consumers who believe they have been victims of identity theft should file a report with the FTC using the online ID Theft Complaint Form located at: https://rn.ftc.gov/dod/widtpubl$.startup?Z_ORG_CODE=PU03