I don't know how much it pertains to artists but that rule is why if you pre-order statues from Sideshow or other companies they need you to agree to extend the shipping time, it's also why in the last couple years thy've changed the expected shipping date from a month to a three month span. For years I would often cite that rule to get all my money back, including the non-refundable deposit, when statues would be delayed a long time.
Reporting a legitimate business to a state's attorney general is significantly different than a self-employed artists.