TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Do FTC Mail, Internet, or Telephone Order Merchandise Rules apply to a MX purchase?

Discussion in 'Model X: Ordering, Production, Delivery' started by Colby Boles, May 1, 2016.

  1. Colby Boles

    Colby Boles Member

    Joined:
    Dec 29, 2015
    Messages:
    278
    Location:
    San Francisco, CA
    As someone who has already paid in full for their MX more than 30 days ago, only to be further delayed, and also as someone who runs an online business that has an order fulfillment component, I have to think that FTC rules apply to Tesla and their cars, just like any other product ordered online. It makes me wonder if their non-refundable deposit is binding at all. If the company is not doing financing, they only have 30 days from a "properly completed" order - which could either be interpreted as the time of the collection of the deposit, or maybe more generously as the time of full payment. There is also a lot of language in the FTC doc regarding communication of delays and that even if the customer accepts the delay, that they can cancel the order at any time. It's a pretty good reading actually:

    Business Guide to the FTC's Mail, Internet, or Telephone Order Merchandise Rule | Federal Trade Commission

    I have no intention of cancelling at the moment, but I've always been a little suspect of how Tesla has been communicating delays and holding on to deposits and full payment vis-à-vis FTC rules. Thoughts?
     
  2. EVger

    EVger Member

    Joined:
    Aug 17, 2013
    Messages:
    104
    Location:
    Florida
    After a quick read, it appears to me that it applies. Thanks for the post, Colby.
     
  3. evanevery

    evanevery Member

    Joined:
    Feb 5, 2016
    Messages:
    44
    Location:
    Waukesha, WI
    Why did you pay for your car 30 days ago? (Just curious...)
     
    • Like x 1
  4. umeshunni

    umeshunni Member

    Joined:
    Jan 4, 2016
    Messages:
    383
    Location:
    San Francisco, CA
    Because we were told that delivery was on 3/30 (and then canceled)
     
  5. evanevery

    evanevery Member

    Joined:
    Feb 5, 2016
    Messages:
    44
    Location:
    Waukesha, WI
    Wow - that sucks!

    Are we required to pay before delivery or can we pay ***AT*** delivery?
     
  6. goneskiian

    goneskiian Active Member

    Joined:
    Nov 16, 2012
    Messages:
    1,986
    Location:
    Bellevue WA
    You can pay AT delivery.
     
  7. loganintx

    loganintx Member

    Joined:
    Mar 8, 2016
    Messages:
    592
    Location:
    Austin, TX
    not true for those who live in states like Texas. I have to pay before it leaves California!
     
    • Like x 1
  8. K-MTG

    K-MTG Sunshade Captain of TMC

    Joined:
    Oct 24, 2015
    Messages:
    2,384
    Location:
    Irvine, CA
    I did the same even though I was warned not to...I should have listened
     
  9. VABarb

    VABarb Member

    Joined:
    Nov 5, 2015
    Messages:
    174
    Location:
    Glen Allen, VA (Richmond area)
    @Colby Boles - I am assuming that since we signed a contract to purchase when we confirmed our orders these rules do not apply and the terms of the contract apply.
     
  10. stopcrazypp

    stopcrazypp Well-Known Member

    Joined:
    Dec 8, 2007
    Messages:
    7,039
    This part stands out to me:
    "The Rule requires that when you advertise merchandise, you must have a reasonable basis for stating or implying that you can ship within a certain time. If you make no shipment statement, you must have a reasonable basis for believing that you can ship within 30 days. That is why direct marketers sometimes call this the "30-day Rule."

    So it is unclear if this rule applies to how the deposit is non-refundable after confirmation, since that policy is pretty clear when you order. Also Tesla is pretty clear that you don't get the car in 30 days, and it is is built to order, so I'm not sure how this 30-day rule would apply in this situation.
     
  11. goneskiian

    goneskiian Active Member

    Joined:
    Nov 16, 2012
    Messages:
    1,986
    Location:
    Bellevue WA
    Oh yeah, forgot about you poor saps. o_O:p;)
     
  12. loganintx

    loganintx Member

    Joined:
    Mar 8, 2016
    Messages:
    592
    Location:
    Austin, TX
    My sales tax is only 6.25% though ;)
     
    • Like x 1
  13. Colby Boles

    Colby Boles Member

    Joined:
    Dec 29, 2015
    Messages:
    278
    Location:
    San Francisco, CA
    I think you make a good point here, and also as VABarb had said, there is a purchase contract as well. I imagine these FTC rules were not written for built-to-order items, but more for commodity merchandise.

     
  14. goneskiian

    goneskiian Active Member

    Joined:
    Nov 16, 2012
    Messages:
    1,986
    Location:
    Bellevue WA
    Well, there you go then! Ours is 9.6%! :eek:
     
  15. loganintx

    loganintx Member

    Joined:
    Mar 8, 2016
    Messages:
    592
    Location:
    Austin, TX
    The small town that I'm from has a 9.75% rate!
     
  16. X Fan

    X Fan Member

    Joined:
    Sep 29, 2015
    Messages:
    490
    Location:
    Naples, FL & OIB, NC
    With a state income tax of..................0%
     
  17. loganintx

    loganintx Member

    Joined:
    Mar 8, 2016
    Messages:
    592
    Location:
    Austin, TX
    But my property taxes ain't cheap :(
     
  18. K-MTG

    K-MTG Sunshade Captain of TMC

    Joined:
    Oct 24, 2015
    Messages:
    2,384
    Location:
    Irvine, CA
    I have to pay $10k of taxes in CA for my X, Oregon folks are lucky
     
  19. goneskiian

    goneskiian Active Member

    Joined:
    Nov 16, 2012
    Messages:
    1,986
    Location:
    Bellevue WA
    None here in WA either. :p
     

Share This Page