Shipping, Returns & Refund Policies

Why Policies Matter

Shipping and refund practices directly affect customer trust — and they’re also legally regulated. The FTC and state agencies can penalize businesses that mislead customers about delivery or refuse lawful refunds.

FTC Mail Order Rule

  • If you advertise shipping times, you must deliver within that time frame.
  • If no timeframe is stated, you must ship within 30 days.
  • If delays occur, you must notify the customer and give them the option to cancel for a refund.

Refund & Return Policies

  • U.S. law doesn’t mandate returns in most cases, but you must honor your stated policy.
  • Policies must be clear, visible, and fair.
  • Some states (like California) require refunds if policies are not disclosed.

 Example: A store with a “No Returns” policy buried in fine print was forced by state regulators to offer refunds and update its website.

Disclosures for Shipping Costs

  • All fees (shipping, handling, customs duties) must be disclosed before checkout.
  • Surprise fees after purchase are considered deceptive.

International Shipping Risks

  • Customs duties, tariffs, and taxes vary by country.
  • Failure to disclose possible international fees can lead to disputes and chargebacks.

Key Takeaways

  • The FTC requires timely shipping and transparent communication.
  • Refund policies must be easy to find and enforceable.
  • Hidden fees or vague shipping promises can lead to fines and disputes.

Action Step: Review your shipping and refund policies. Make sure they’re easy to find on your website and consistent with FTC rules.

If you want to read more about shipping, return & refund policies, please see Recommended Books.

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