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

[Colby Boles]

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?

 

[EVger]

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". . . .

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?

After a quick read, it appears to me that it applies. Thanks for the post, Colby.

 

[evanevery]

Why did you pay for your car 30 days ago? (Just curious...)

 

[umeshunni]

Because we were told that delivery was on 3/30 (and then canceled)

 

[evanevery]

Wow - that sucks!

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

 

[goneskiian]

You can pay AT delivery.

 

[loganintx]

You can pay AT delivery.

not true for those who live in states like Texas. I have to pay before it leaves California!

 

[K-MTG]

Why did you pay for your car 30 days ago? (Just curious...)

I did the same even though I was warned not to...I should have listened

 

[WABarb]

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?

@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.

 

[stopcrazypp]

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?

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.

 

[goneskiian]

not true for those who live in states like Texas. I have to pay before it leaves California!

Oh yeah, forgot about you poor saps.

 

[loganintx]

Oh yeah, forgot about you poor saps.

My sales tax is only 6.25% though

 

[Colby Boles]

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.

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.

 

[goneskiian]

My sales tax is only 6.25% though

Well, there you go then! Ours is 9.6%!

 

[loganintx]

Well, there you go then! Ours is 9.6%!

The small town that I'm from has a 9.75% rate!

 

[X Fan]

My sales tax is only 6.25% though

With a state income tax of..................0%

 

[loganintx]

With a state income tax of..................0%

But my property taxes ain't cheap

 

[K-MTG]

I have to pay $10k of taxes in CA for my X, Oregon folks are lucky

 

[goneskiian]

With a state income tax of..................0%

None here in WA either.