The Cooling-Off Rule

The cooling-off rule is something that a majority of consumers are completely unaware of and yet, it can be very important! If you buy something in a store and then decide you don't want it, you may have problems returning it but if you buy it in your own home or from any place that's not the seller's permanent place of business, you do have that option. The cooling-off rule, enacted by the Federal Trade Commission , states that you have three days to cancel any purchase of $25 or more when that purchase was made somewhere other than the seller's primary business location. Under this rule you have until midnight of the third business day to cancel and receive a full refund.

This applies at your home, workplace, or at temporary or short-term facilities, such as a hotel room, convention center, or fairgrounds. In fact, the salesperson, by law, must tell you about your cancellation rights at the time of the sales and must give you two copies of a cancellation form. This way you can keep one and send one back if you wish to cancel. They should also give you a dated copy of your receipt or contract that shows the name and address of the seller and explains your right to cancel. 

There are some exceptions, though. This rule does not apply to - purchases under $25; purchases that are not primarily intended for personal, family or household use; purchases made entirely by mail, telephone or internet; products that are needed for emergency uses. Purchases that were negotiated at the sellers' permanent location but closed somewhere else are also not covered. Neither are parts that are purchased as part of a repair/maintenance; real estate; insurance; securities; automobiles; and arts or crafts.

In order to cancel you must sign and date one copy of the cancellation form and then mail it by certified mail to the address given for the cancellation. The envelope must be post-marked before midnight of the third business day. Keep the other copy of the cancellation for your records. If for some reason, you did not receive a cancellation letter - write your own. Remember you do not have to give a reason for canceling your purchase. Under this rule you have the right to change your mind. 

The seller must cancel and return any contracts you signed, refund all your money, return any trade-in, and tell you when they will be picking up the product within 10 days. They must then either pick up the items left with you or reimburse you for mailing expenses if you agreed to mail these back within 20 days. 

You, in turn, must make all the goods that you received from the seller available for pick-up. You must return them in as good of condition as you received them. If you fail to do either of these - you may still be obligated to pay for the products under the contract.