Clicky Compliance Alert: Recent AG Case Targets Merchant for Over-Charging S&H for FREE Products

I, like millions of other Americans, prefer to shop online. What’s not to like, you don’t have to deal with parking lots, lines at stores, or pushy sales people. You get to sit back in the comfort of your own home and easily find the best price without ever having to miss the end of your favorite show. But consumers need to be on the look out, because a few companies have been trying to take advantage of the online shopping experience by adding on extraordinarily high shipping and handling charges.

Recently, the Pennsylvania Attorney General’s Bureau of Consumer Protection reached a settlement agreement with one of these companies. The Attorney General’s (“AG”) office had alleged that SAS Group, Inc., (“SAS Group”) was selling various products online and marketing them as “free”. Like most “free” products the SAS Group products were sold “plus shipping and handling”. There is nothing wrong with charging for shipping and handling, in fact, I believe that almost all online consumers expect to be charged for shipping as its just part of the online shopping game. But I think we can all agree that the SAS Group went to far. Linda Kelly, Pennsylvania’s Attorney General, stated in a recent press release “SAS charged shipping and handling for those free products that far exceeded the actual cost for shipping and handling and in many instances reflect the actual cost of the item”. SAS also tried to get tricky with their shipping and started sending consumers their products in two boxes when the products could have all been sent in one, double the boxes double the shipping.

Online Marketers and Sellers need to be aware of this case and make sure that their shipping and handling charges and methods are not going the way of SAS Group. Do things the right way or you too may be the subject of an AG’s investigation and facing fines, penalties, and the payment of restitution just like SAS Group.

Here are a few quick tips:

1. Make sure all shipping and handling charges are clearly disclosed.
2. The cost of shipping and handling charged to the consumer should not be more than the actual cost of shipping and a reasonable amount for handling.
3. If shipping and handling costs more than the retail cost of the product the charges are clearly excessive.
4. If your product is so bad that you have to try and make money off of shipping and handling sell a different product.

Read the full Pennsylvania Attorney General’s Press Release Here

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