Door-to-door sales and the FTC’s Cooling-Off Rule
Have you ever been invited to an in-home sales party and felt pressured to buy something? Well, if you regret your purchase, the FTC’s Cooling-Off Rule may be able to help. But time is of the essence.
The Rule gives you a 3-day right to cancel a sale made at someone’s home or workplace, or at a seller’s temporary location — like a hotel room, convention center, fairground or restaurant.
By law, the seller must tell you about your right to cancel at the time of sale, give you two copies of a cancellation form, and a copy of your contract or receipt. Your right to cancel for a full refund extends until midnight of the third business day after the sale. You don’t have to give a reason for canceling your purchase. You have the right to change your mind.
But there are exceptions, including sales that are:
- under $25 for sales made at your home;
- under $130 for sales made at temporary locations;
- real estate, insurance, or securities;
- vehicles sold at temporary locations, if the seller has at least one permanent place of business; and
- arts or crafts sold at fairs or places like shopping malls, civic centers, and schools.
If you cancel your purchase, the seller has 10 days to cancel and return any check you signed or refund all your money and tell you whether any product you still have will be picked up. Within 20 days, the seller must either pick up the items left with you, or reimburse you for mailing expenses.
To learn more, see Buyer’s Remorse: When the FTC’s Cooling-Off Rule May Help.