Cooling-off Period for Sales Made at Home or Other Locations (2024)

FAQs

Cooling-off Period for Sales Made at Home or Other Locations? ›

What Is the FTC's Cooling-Off Rule? The Cooling-Off Rule gives you three days to cancel certain sales made at your home, workplace, or dormitory, or at a seller's temporary location, like a hotel or motel room, convention center, fairground, or restaurant.

The Cooling Off Rule provides that it is unfair and deceptive for sellers engaged in “door-to-door” sales valued at more than $25 to fail to provide consumers with disclosures regarding their right to cancel the sales contract within three business days of the transaction.

Cooling-off Rule is a rule that allows you to cancel a contract within a few days (usually three days) after signing it. As explained by the Federal Trade Commission (FTC), the federal cooling-off rules gives the consumer three days to cancel certain sales for a full refund.

14 days is the minimum cooling-off period that a seller must give you.

A ""Cooling Off" period is the time during which an employee is disqualified (recused) from participation in all official matters involving an entity because of a particular situation, for example, a prior employer.

Use your cooling-off period

You need to tell the seller you don't want the item within 14 days of receiving it. Once you've told the seller, you've got another 14 days to actually send the item back. You can use our template letter to let the seller know you're cancelling. Keep a copy so you've got proof you sent it.

The cooling-off period generally commences the same day the buyer signs the contract or informs the seller that they've signed. It ends at 5pm on the final business day of the period thereafter. If you intend to terminate the contract, you must provide a signed notice by 5pm that day.

In consumer rights legislation and practice, a cooling-off period is a period of time following a purchase when the purchaser may choose to cancel a purchase, and return goods which have been supplied, for any reason, and obtain a full refund.

Cancelling during the cooling-off period

You may want to cancel an insurance policy if you have just bought it and have changed your mind. By law, you have a minimum 14-day cooling-off period during which you can cancel the policy for any reason.

Consumers have 10 business days to change their mind and cancel the contract (cooling-off period).

What is the duration of cooling-off period? ›

Once you sign the contract, you have a 14-day cooling-off period within which to change your mind.

cooling-off period | Business English

a period of time during which you can change your mind about an agreement that you have made or something that you have decided to buy: Once you have bought an annuity, you cannot change your mind after the 14-day cooling-off period.

In most cases, the cooling off period can be extended (or shortened) if the buyer and the seller both agree to it in writing. There is no official legislation, but the maximum duration of a cooling off period is usually recommended to be 10 business days.

The Cooling-Off Rule gives you three days to cancel certain sales made at your home, workplace, or dormitory, or at a seller's temporary location, like a hotel or motel room, convention center, fairground, or restaurant. The Rule also applies when you invite a salesperson to make a presentation in your home.

Many contracts, particularly if the contract is signed in the buyer's home… usually for high-dollar goods…have a 3 day right of recission. During the that time the buyer may cancel the transaction penalty-free.

Don't sit on your hands! If you regret a purchase, sent in the written cancellation within the three days provided by law! To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll- free, 1-877-382-4357.

The rule applies to sales at the buyer's home, workplace, dormitory, and fairgrounds. The rule also applies when the consumer invites the salesperson to make a presentation in his or her home.

This means you have the right to change your mind about your purchase or agreement and receive a full refund. The cooling off period doesn't apply to everything. Some products and services aren't required to offer a cooling off period, although providers may still independently offer one.

A statutory right to cancel a contract or return a purchase because you change your mind is not the norm in Texas. State law grants a right to cancel — also called a “right of rescission” or a “cooling off” period — in only a few specific instances.

EXCEPTIONS TO THE COOLING OFF PERIOD RULE

The Cooling-Off Rule does not cover sales that are: under $25 for sales made at your home; under $130 for sales made at temporary locations; for goods or services not primarily intended for personal, family, or household purposes.