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HRD-81-41 1 (1981-01-19)

handle is hein.gao/gaobabblm0001 and id is 1 raw text is: GAO i/(6 United States General Accounting Office Human Resources Washington, DC 20548 Division B-201402 The Honorable Michael Pertschuk Chairman, Federal Trade Commission JANUARY 19, 1981 Dear Mr. Pertschuk: Subject: 6ore Action Is Needed on 4 Consumer Mail Order Proble_.(HRD-81-41) Because many consumers are still subjected to mail order problems, mainly late delivery, we reviewed the Federal Trade Commission's (FTC's) activities concerning the monitoring, enforcement, and evaluation of the mail order merchandise rule. FTC's mail order rule requires the seller to have a reasonable basis to expect shipment to consumers within the time advertised, or if no time was advertised, within 30 days of receipt of a properly completed order. If the advertised shipment time (or the 30-day limit) cannot be met, the seller must so notify the consumer. FTC established this rule, effective February 2, 1976, to address consumer problems with mail order purchases. The results of our review are summarized below and detailed in the enclosure. We believe that FTC's monitoring and enforcement of the :mail order rule could be substantially improved if FTC regularly obtained consumer mail order complaint data avail- able at the U.S. Postal Service. We believe these data would be helpful to FTC because the complaints (1) mostly 'concern delivery problems covered under the mail order rule, (2) are several times the number received by the Commission, and (3) are filed by company'name, thereby aiding identifica- tion of potential violations. While most sellers may be complying with the mail order rule, the large volume of mail order complaints, our analysis of Postal Service complaint files, and the views of certain Federal and State officials familiar with consumer mail order problems indicate a substantial level of noncompliance that needs attention. We believe FTC should evaluate the overall effectiveness of the rule and periodically analyze the ade- quacy of its enforcement actions in key locations of the mail order industry, such as the Los Angeles and New York areas. (208104) 114166

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