GlitterSniffer Cosmetics Turnaround Time- Google Checkout and The Mail and Telephone Order Merchandise Rule

On Saturday, March 12, 2011, GlitterSniffer Cosmetics announced a change in their turnaround time for orders. They extended it from 5 business days, as stated in their listings and their Artfire policies, to 15 days.  The explanation was that there is a 10 day hold on their funds remitted via their payment processor Google Checkout as a new merchant.

The company states this is temporary, for approximately a month.

A check of Google Checkout shows that it is a policy to place a 10 day hold on funds for new merchants for a period of 60 days, then for a review to be conducted to lift the hold.

GlitterSniffer Cosmetics began using Google Checkout on January 28, 2011. The review would be conducted by Google Checkout in about 2 weeks time, not the month that GlitterSniffer Cosmetics is stating.

The hold is placed on funds remitted to the merchant, not the actual charge to the method of payment. This means that GS has to charge the funds then wait the ten day hold. The company has 168 hours (7 days) to capture the funds. Despite the funds not actually being transferred to the company they are obligated, per Google Checkout Program Policies and Guidelines, to fulfill orders within 24 hours of charging the method of payment. 

This would seem to indicate that per Google Checkout Program Policies and Guidelines the new 15 day turnaround time is incorrect if the company wishes to be compliant with the guidelines. Once the money is charged (which at the longest is 7 days) the order must ship within 24 hours to meet the guidelines. That is, at most, 8 days. 


Additionally, the new turnaround time would need to meet the criteria set forth by the FTC Mail and Telephone Order Merchandise Rule, which states:

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.

 If, after taking the customer’s order, you learn that you cannot ship within the time you stated or within 30 days, you must seek the customer’s consent to the delayed shipment. If you cannot obtain the customer’s consent to the delay -- either because it is not a situation in which you are permitted to treat the customer’s silence as consent and the customer has not expressly consented to the delay, or because the customer has expressly refused to consent -- you must, without being asked, promptly refund all the money the customer paid you for the unshipped merchandise.

This means, per the Federal Trade Commission, the merchandise must be shipped out in the agreed turnaround time, or the customer must consent to the delay. If the customer does not agree expressly to the delay then the company must issue a refund without the customer having to ask.

It is unknown at this time if all customers with current orders have been notified and given consent for the delay, nor if Google Checkout is aware of the issue GlitterSniffer Cosmetics seems to be having with the new turnaround time and meeting their payment processors' policies and guidelines. As of publication, the listings and policies for GlitterSniffer Cosmetics on Artfire still give a stated turnaround time of 5 business days.

I will update in the event new information becomes available.