Consumer Rights for Online Shopping in the USA: What the FTC Guarantees

Online shopping in the USA comes with more legal protections than most people realise — and more enforcement teeth than sellers want you to know about. The FTC’s Mail, Internet, or Telephone Order Rule sets a 30-day default for delivery. Chargeback rights through your card issuer are a powerful backup for non-delivery and misrepresentation. And if a seller crosses into fraud territory, federal and state agencies will want to hear from you. This guide covers consumer rights for online shopping in the USA and what to do when things go wrong.

What Are Your Rights?

Several distinct legal frameworks apply to online purchases in the USA.

The FTC Mail, Internet, or Telephone Order Merchandise Rule (16 CFR Part 435) applies to most online purchases. It requires sellers to:

• Ship within the timeframe they advertise, or within 30 days if no shipping estimate was given
• Notify you promptly if they cannot ship within that time and give you the option to cancel for a full refund
• Actually cancel and refund if you choose — they cannot hold your money indefinitely for an item they cannot deliver

Credit card protections give you a practical enforcement mechanism that does not require any legal action. Under the Fair Credit Billing Act (FCBA), you can dispute a credit card charge for goods that were never delivered or that did not match their description. The dispute must generally be filed within 60 days of the statement containing the charge. Debit card users have fewer protections — Visa and Mastercard offer voluntary chargeback rights on debit, but they are not as robust as the statutory credit card protections.

How Much Can You Claim?

There is no fixed federal compensation amount for online shopping disputes the way there is for airline delays in the UK. What you can recover:

• Non-delivered goods: Full refund of the purchase price, including shipping paid
• Misrepresented goods: Full refund if the product materially differs from its description or advertising
• Faulty goods: Refund, replacement, or repair depending on whether the seller provided a written warranty and what state law applies
• State UDAP claims: Many states’ Unfair and Deceptive Acts and Practices laws allow 2× or 3× damages plus attorney fees for wilful violations — which can make it economical for an attorney to take your case on contingency even for relatively small amounts

FTC rules require refunds to be processed within 7 business days for credit card payments and 20 business days for other payment methods. If a seller is sitting on your refund past these deadlines, that is itself a separate violation.

Step-by-Step: What to Do

1. Contact the seller first. Send a written message (email is fine) stating the problem clearly, what you bought, when you ordered, and what you want — refund, replacement, or delivery. Keep the tone professional and state a 14-day response deadline.
2. If no response, file a chargeback. Call the number on the back of your credit card and tell them you want to dispute a charge. Common reason codes: “item not received” or “item not as described.” Provide your order confirmation, tracking information (or lack thereof), and the seller’s non-response. Card issuers typically resolve disputes within 30 days.
3. File an FTC complaint at reportfraud.ftc.gov. This creates a regulatory record and may prompt action against sellers who are systematically defrauding consumers.
4. Report to your state AG if you believe the seller engaged in deceptive practices. State AG offices often have online complaint portals and are particularly active on e-commerce fraud.

What If They Don’t Respond?

If the seller refuses to engage and your card issuer’s chargeback is denied (uncommon for clear non-delivery cases), small claims court is your next step. Limits vary by state — typically $5,000–$25,000. You sue the seller’s business entity in the county where you reside or where the business is located. For disputes under $500, the cost and hassle of court may not be worth it, but for anything significant it is a viable option.

If you believe you were the victim of an online scam — a company that took payment and had no intention of delivering — also file with the Internet Crime Complaint Center (IC3) at ic3.gov. The FBI operates IC3 and uses the reports to identify and pursue fraud networks.

PayPal, Venmo, and other payment platforms have their own buyer protection policies. PayPal’s Purchase Protection, for example, covers non-delivery and significantly not-as-described claims. These are separate from your credit card rights and can sometimes be faster.

For general guidance on drafting a complaint that creates a paper trail, see our formal complaint letter guide.