Cooling-Off Rule applies to purchase cancellation

There are basic rules protecting all consumers and one of the most important is the Federal Trade Commission’s Cooling-Off Rule. If you buy something at a store and change your mind, you may not be able to return the merchandise. But if you buy an item in your home or at a location that is not the seller’s permanent place of business, you may have the option. The Cooling-Off Rule gives you three days to cancel purchases of $25 or more and the right to cancel for a full refund until midnight of the third business day after the sale.

The Cooling-Off Rule applies to sales at your home, workplace or dormitory, or at facilities rented on a temporary or short-term basis, such as hotel or motel rooms, convention centers, fairgrounds and restaurants. The rule applies even when you invite the salesperson to make a presentation in your home.

Under the rule, the salesperson must tell you about your cancellation rights at the time of sale and give you two copies of a cancellation form (one to keep and one to send) and a copy of your contract or receipt that is dated, shows the name and address of the seller, and explains your right to cancel. The contract or receipt must be in the same language used in the presentation.

Some types of sales cannot be canceled even if they occur in locations covered by the rule. For instance, the following would not be covered: sales under $25; goods or services not primarily intended for personal, family or household purposes; sales made entirely by mail or telephone or that are the result of prior negotiations at the seller’s permanent business location; or sales needed to meet an emergency. Also exempt from the rule are sales that involve: real estate, insurance or securities, automobiles, vans, trucks or other motor vehicles sold at temporary locations, provided the seller has a permanent place of business, arts or crafts sold at fairs or locations such as shopping malls, civic centers, and schools.

To cancel a sale, sign and date one copy of the cancellation form and mail it, making sure the envelope is postmarked before midnight of the third business day after the contract date. Saturday is considered a business day, Sundays and federal holidays are not. Proof of the mailing date and receipt are important, so consider using certified mail with a return receipt. Consider hand delivering the cancellation notice before midnight of the third business day and keep a copy of the cancellation form for your records.

If the seller did not give cancellation forms, you can write your own cancellation letter. It must be postmarked within three business days of the sale. You do not have to give a reason for canceling your purchase. You have a right to change your mind. If you cancel, the business has 10 days to cancel and return any promissory note or other negotiable instrument you signed, refund all your money and tell you whether any product you still have will be picked up, and return any trade-in.

Within 20 days, the seller must pick up the items left with you or reimburse you for postage if you agree to send the items back. You must return items in as good condition as when you received them. If you do not make the items available, or if you agree to return the items but fail to, you remain obligated under the contract.

Volunteer Needs: The Maine Center for the Public Interest is preparing for a statewide membership solicitation. If you have experience or interest in telephone solicitation and would like to help, call 947-3331.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT-The Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. For information, write Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.