Settlement Overview
- Total Payment: $250,000
- Permanent injunctive relief
- Implementation of compliance program
- Five-year monitoring period
The Federal Trade Bureau announced today that Frank Romero has agreed to a court order requiring payment and implementing strict compliance measures for violations of the Mail, Internet, or Telephone Order Merchandise Rule ("Mail Order Rule").
Rule Violations
The FTB's investigation revealed that Romero's business operations violated several key provisions of the Mail Order Rule, including:
- Failing to deliver products within the promised timeframe
- Not providing delay notices to customers
- Failing to offer cancellation options
- Improper handling of customer refunds
Court Order Requirements
Under the terms of the court order, Romero must:
- Pay $250,000 in civil penalties
- Implement a comprehensive compliance program
- Provide regular compliance reports to the FTB
- Maintain detailed records of all transactions
- Submit to monitoring for five years
Consumer Protection Measures
The settlement includes several provisions designed to protect consumers:
- Clear disclosure of shipping timeframes
- Prompt notification of delays
- Easy cancellation processes
- Timely refund processing
Bureau Statement
"This settlement demonstrates our commitment to enforcing the Mail Order Rule and protecting consumers who shop online," said Samuel Thompson, Director of the FTB's Bureau of Consumer Protection. "Businesses must deliver on their promises to consumers or face consequences."
The Mail Order Rule requires sellers to have a reasonable basis for any shipping representations they make and to notify customers of delays. Violations can result in civil penalties of up to $46,517 per violation.
Consumers who have experienced similar issues can file a complaint through our online complaint portal.