Amid Pandemic, Mail Order Rule Still Requires “A Certain Level of Customer Service,” Write Akin Gump Lawyers in Law360 Article

Law360 has published the article “Fashion Nova Case Has Lessons For Retailers Amid Pandemic,” written by Akin Gump litigation partner Meredith Slawe, antitrust partner Corey Roush, and litigation senior counsel Mira Baylson and Daniel Brewer. The article, which originated as an Akin Gump client alert, examines a record $9.3 million settlement announced by the Federal Trade Commission (FTC) with an online retailer in an action brought under the “Mail Order Rule.”

The Mail Order Rule, the article states, “requires retailers to ship merchandise within 30 days unless they make express representations regarding different time frames.” It also requires businesses to offer consumers “a fair opportunity to consent to or reject delayed shipping speeds.”

In the case in question, the authors write that Fashion Nova, “a large fast fashion e-commerce retailer, allegedly touted its fast shipping speeds and charged consumers a premium for one- and two-day shipping at checkout.” In numerous instances, though, the FTC says the company failed to live up to its promises.

Given the unusual circumstances of the COVID-19 pandemic, the authors suggest that “clear website disclosures and customer communications regarding potential delays in order processing and shipping” should always be followed. In addition, they write, “such disclosures and communications may provide protection for businesses that are unable to satisfy promised shipping speeds.”

To read the article in its entirety, please click here.