Shopping From Home - Cooling-Off Rule

If you buy something at a store and later change your mind, your ability to return the merchandise depends upon store policy and any product guarantees or warranties. But if you buy an item in your home you may have three days to cancel. This Cooling-Off Rule also applies to sales purchases of $25 or more at a buyer’s workplace or dormitory and at places rented by a seller on a temporary basis, such as hotel or motel rooms, convention centers, fairgrounds and restaurants.

Enforced by the Federal Trade Commission, the Cooling-Off Rule requires salespersons to tell you that you have three business days after the sale to change your mind. At the time of the sale, the seller must give you:

• two dated copies of a cancellation form (one to keep and one to send); and

• a copy of your contract or receipt showing the salesperson’s name and address and explaining your right to cancel. The contract or receipt must be in the same language that’s used in the sales presentation.

To cancel a purchase, sign and date one of the cancellation notices and send it by certified mail postmarked before midnight of the 3rd business day following the sale. Saturday is considered a business day, but Sunday and legally-recognized holidays are not. Keep the other notice of cancellation for your records.

If you were not provided with the cancellation form at the time of the sale, your three days doesn’t start until after you receive the form from the seller. You may also write your own letter to cancel the order.

Once you have canceled you are entitled to a refund within 10 days. The seller must also notify you of the date for product pick up, and return of any trade-ins given as down payment. Within 20 days, the seller must either pick up the items left with you, or reimburse you for mailing expenses, if you agree to send back the items.

If you paid by credit card, canceled the contract within 3 days, have not yet paid the credit card bill, and still have a problem getting a refund, dispute the charges with your credit card company. (See Resolving Credit Problems.)

There are situations where the Cooling-Off Rule does not apply.

• The sale was made entirely by mail or telephone.

• The sale was the result of prior negotiations at the seller’s permanent business location where the product is regularly sold.

• If a document has been signed waiving the right to cancel.

• Sale of goods and services not primarily intended for personal, family or household use.

• Transactions involving real estate, insurance, securities, or motor vehicles are involved.

• The product can’t be returned in substantially the same condition in which you received it.

• Sale of arts or crafts sold at fairs, shopping malls, civic centers, or schools.