FTC Mail Order Rule for FBM Sellers: The 30-Day Rule, Delay Notices, and Refunds
The FTC’s Mail, Internet, or Telephone Order Merchandise Rule (16 CFR Part 435) says a merchant needs a “reasonable basis” for any shipping time it states, and, when it states none, a reasonable basis for believing it can ship within 30 days. If the order cannot ship on time, the FTC’s business guide says the merchant must either get the buyer’s consent to the delay through a “delay option notice” or cancel and refund. As of 2026-10-07, the guide lists civil penalties of up to $53,088 per violation.
That matters most to sellers who ship their own orders, which is what fulfilled-by-merchant (FBM) selling means. This guide restates the federal rule step by step, from coverage to refund deadlines. Amazon’s own late-shipment and cancellation metrics are a separate system; see FBA vs FBM for those.
Sources: the FTC’s Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule and 16 CFR 1.98 on eCFR, both read 2026-10-07. Quotes are from the FTC guide unless marked otherwise.
What the Mail Order Rule Covers
The FTC guide says the Rule “applies to most goods a customer orders from the seller by mail, telephone, fax, or on the Internet.” It covers goods, not services: the guide names mail order photo-finishing as an example of a service outside the Rule.
The guide lists four exempt categories (checked 2026-10-07):
| Exempt under the Rule | Note from the FTC guide |
|---|---|
| Magazine subscriptions and similar serial deliveries | Exempt “except for the first shipment” |
| Seeds and growing plants | Fully exempt |
| Collect-on-delivery (C.O.D.) orders | Fully exempt |
| Transactions covered by the Negative Option Rule | The guide’s examples are book and music clubs |
The clock starts at a specific moment. Per the guide, action under the Rule “begins as soon as you receive a “properly completed” order,” which it defines as receiving the correct full or partial payment together with all the information needed to fill the order.
Who Counts as the Seller When Someone Else Ships
The FTC answers this in its staff Q&A on fulfillment houses and drop shippers. Asked who is liable for violations caused by a fulfillment house or drop shipper, the answer is “The seller is,” because “the person soliciting the order, not the agent fulfilling it, is the seller under the Rule.”
The same answer adds that the seller “can adjust the shipment representations to include the time needed to transmit orders to a fulfillment house and for the fulfillment house to respond.” For an FBM seller using a 3PL or a drop-ship supplier, that is the practical point: the handoff time belongs inside the promised window.
What the guide does not do is discuss marketplaces. A full-text search of the page on 2026-10-07 found no mention of Amazon, marketplaces, or third-party selling platforms, so it does not say whether the marketplace or the merchant is “the person soliciting the order” on a marketplace listing. This guide draws no conclusion on that point and sticks to the rule text.
The Reasonable Basis Test for Shipping Promises
The guide defines a reasonable basis as information that, at the time of the representation, “would under the circumstances satisfy a reasonable and prudent businessperson, acting in good faith, that the representation is true.”
It names four areas the evidence should cover:
- Anticipated demand: is demand for each advertised item reasonably anticipated?
- Supply: is there enough inventory on hand, or adequate sources of supply, to meet that demand?
- Fulfillment system: can it handle the cumulative anticipated demand across all promotions in the season?
- Recordkeeping: are records kept of the key events in each transaction?
Two staff answers show how strictly a shipping statement is read. On qualified promises: “If you represent that you ship in 48 hours most of the time, you will be required to ship or provide notification of delay in 48 hours all the time.” On stock claims, the guide says a seller that advertises “in-stock items ship immediately” must ship, send a delay notice, or cancel immediately, unless it tells the buyer at order time that the item is out of stock.
Those four areas also make a sound standard for setting FBM handling times: back each one with real stock counts and pick-and-pack capacity, especially before Q4.
The FTC 30-Day Shipping Rule and the 50-Day Credit Exception
When a seller makes no shipment statement, the default applies: “If you make no shipment statement, you must have a reasonable basis for believing that you can ship within 30 days.” The guide notes that this is why direct marketers call it the “30-day Rule.”
There is one extension. When the buyer applies to the seller for new in-house credit (or a higher credit line) to pay for the order and the seller made no shipment representation, the guide says the seller is “allowed 50 (instead of 30) days to ship the order.” The extra 20 days exist to process the credit application.
Decision Framework: Ship, Send a Delay Notice, or Cancel
The guide sets out the order of decisions once a seller learns it cannot ship on time. First it decides whether it will ever be able to ship. If not, the guide says to “promptly cancel the order and make a full refund.” If it can ship later, it seeks the buyer’s consent to the delay.
| Situation (FTC guide, 2026-10-07) | What the Rule calls for |
|---|---|
| Will ship within the stated time, or within 30 days if none stated | Ship; no notice needed |
| Cannot ship on time and never will | Cancel promptly and refund in full |
| Cannot ship on time, new date 30 days or less past the original | First delay notice; silence can count as consent |
| Cannot ship on time, new date more than 30 days out or unknown | First delay notice; no response means automatic cancellation within the original time plus 30 days |
| Misses the revised date too | Renewed delay notice; silence counts as refusal |
| Buyer refuses the delay | Refund without being asked |
Timing is the part sellers miss. The guide says: “In any event, no notification to the customer can take longer than the time you originally promised or, if no time was promised, 30 days.” The guide notes that some businesses set internal deadlines earlier than the Rule’s and cancel and refund automatically when they miss them. We recommend FBM sellers do the same, with a cut-off a few days before the handling window closes.
How to Write an FTC Shipping Delay Notice
The guide calls the first notice the “delay option notice.” According to the guide, it must include:
- a definite revised shipment date, or, if unknown, a statement that the seller cannot give one;
- a statement that a buyer who chooses not to wait can cancel and obtain a full and prompt refund;
- some means for the buyer to cancel at the seller’s expense.
What the notice says about silence depends on the new date:
- New date 30 days or less past the original: the notice tells buyers that not responding will be treated as consent to the delay.
- New date more than 30 days out, or no date: the notice tells buyers that, if they do not respond, the order “will be cancelled automatically within the originally promised time plus 30 days.”
The channel is flexible. The guide allows “whatever means you wish” and lists telephone, fax, mail, or email, as long as the buyer is told reasonably quickly and has enough advance notice to make a meaningful decision. A staff answer confirms the notice can go to the buyer’s email address.
The guide also prints a sample notice for the “no date” case: it explains the backorder, offers cancellation through a toll-free number, and states the automatic cancellation date. It works as a template for an FBM seller’s own message, with the cancellation method swapped for a channel the seller actually monitors.
Renewed Delay Notices When the New Date Slips
If the seller then misses the revised date, the guide requires a “renewed” delay option notice. The key difference from the first notice is that the buyer’s silence may not be treated as consent. The renewed notice includes a new date (or a statement that none can be given), the right to cancel immediately for a full refund, and a statement that the order will be cancelled automatically unless the buyer agrees to wait. It also needs a way for the buyer to reply at the seller’s expense; the guide’s examples are a postage-prepaid reply card, a toll-free number, or a website.
In practice, a second slip turns every unanswered order into a cancellation. Sellers who expect a long backorder often get a cleaner result by cancelling and relisting than by chasing renewed consent.
Refund Deadlines and What the Refund Includes
The guide sets the refund clock from the moment the order is cancelled (checked 2026-10-07):
| How the buyer paid | Refund deadline in the FTC guide |
|---|---|
| Cash, check, money order, credit where a third party is the creditor, or any other method except seller-issued credit | “within seven working days after the order is cancelled” |
| Credit where the seller is the creditor | Credit the account or confirm no charge “within one billing cycle after the order is cancelled” |
The amount is the full amount: when nothing in the order can ship, the guide says the refund covers everything the buyer “tendered,” including “any shipping, handling, insurance, or other costs.” The guide also rules out store credit: “When making Rule-required refunds, you cannot substitute credit toward future purchases, credit vouchers, or scrip.”
Where Amazon’s Own Rules Fit
Nothing above is an Amazon policy. Amazon runs its own seller performance targets, such as late shipment and cancellation rates, and its own buyer protection through the A-to-z Guarantee. Those numbers live in Account Health, and sellers who want Prime badges on self-shipped orders face stricter bars under Seller Fulfilled Prime. None of them are FTC thresholds, and the FTC guide does not mention them.
Penalties and Recordkeeping
The guide states that merchants who violate the Rule “can be sued by the FTC for injunctive relief, monetary civil penalties of up to $53,088 per violation,” plus consumer redress. A note on the page says it was edited in January 2025 to reflect inflation-adjusted maximums. On 2026-10-07, eCFR’s current 16 CFR 1.98 lists the same $53,088 for Section 5(m)(1)(A) of the FTC Act, applying to penalties assessed after January 17, 2025.
Records are not mandatory, but the guide says “an accurate, up-to-date recordkeeping system can help show that you are complying with the Rule.” Its list of records worth keeping per order: the date the order arrived, the content and date of any delay notice, the date of any cancellation, the ship date and items shipped, and the date and items of any refund.
FBM Late Shipment Checklist
- Handling times on listings match real stock and pick-pack capacity.
- 3PL or drop-ship handoff time is built into the promised window.
- An internal cut-off triggers action before the promised date or day 30.
- Delay notice template states the new date (or no date), the cancel option, and a free way to cancel.
- The silence wording matches whether the new date is within 30 days.
- Refunds go out within seven working days and include shipping and handling.
- Each order keeps a dated trail: order, notice, cancellation, shipment, refund.
- Buyer messages are answered promptly; see our customer service guide.
Frequently Asked Questions
Does the FTC 30-day rule mean every order must ship within 30 days?
No. Per the FTC guide, 30 days is the default only when the seller makes no shipment statement. If the seller states a time, such as two-day handling, that stated time is the one the Rule holds it to.
Can a delay notice be sent by email?
Yes. The FTC staff answer to “Can we send the delay option notice to the customer’s e-mail address?” is “Yes.” The guide lists telephone, fax, mail, and email as acceptable means.
Does the FTC Mail Order Rule apply to Amazon orders?
The FTC guide does not address marketplaces or Amazon by name (full-text check, 2026-10-07). It says the Rule covers goods ordered by mail, telephone, fax, or the Internet, and that the person soliciting the order is the seller. It does not say who that is on a marketplace listing.
Is a gift card or store credit an acceptable refund?
Not for Rule-required refunds. The guide says sellers “cannot substitute credit toward future purchases, credit vouchers, or scrip.”