FTC Cooling-Off Rule — 3-Day Right to Cancel Door-to-Door and Off-Premises Sales
What Is It?
The FTC Cooling-Off Rule (16 C.F.R. Part 429) gives you a 3-business-day right to cancel any sale of $25 or more that takes place at your home, workplace, dormitory, or at a location that is not the seller’s permanent place of business — such as a hotel seminar, fairground booth, or temporary pop-up location. You can cancel for any reason, no questions asked, and receive a full refund.
The rule exists because buyers who are approached in their own homes or at high-pressure off-site events are in a weaker negotiating position than buyers who walk into a store. Congress mandated the cancellation right to correct that imbalance.
What Qualifies
The rule applies to sales where:
- The purchase is $25 or more
- The sale takes place at your home, workplace, or any location other than the seller’s normal retail establishment
- The seller is a commercial entity (not a private individual)
Common scenarios covered:
- Door-to-door sales (vacuum cleaners, solar panels, security systems, home improvement services)
- Sales at hotel or motel seminars (“free dinner” timeshare or investment pitches)
- Temporary sales booths at fairs, conventions, or trade shows
- Sales at your workplace made during a sales visit
What Is Excluded
The rule does not apply to:
- Sales under $25
- Sales you initiated by calling the seller or walking into their store
- Real estate, insurance, and securities sales
- Emergency home repairs you requested on the spot (e.g., you called a plumber and then decided to buy a service contract on the same visit)
- Arts and crafts sales at fairs or schools
- Sales entirely by mail or telephone
Your Rights Under the Rule
Seller obligations at the time of sale:
- Give you two copies of a cancellation form (one to keep, one to send back)
- Give you a written contract or receipt that is dated, shows the seller’s name and address, and includes this notice in 10-point bold type: “You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction.”
If the seller does not provide these documents, the 3-day clock does not start — meaning your right to cancel may extend indefinitely until proper notice is provided.
How to Cancel
- Write a cancellation notice. Your signed and dated notice must state that you are canceling the contract. Use the form the seller provided, or write your own. Keep a copy.
- Send it before midnight of the third business day. “Business days” are Monday through Saturday, excluding federal holidays. The sale day does not count. If you bought on Friday, the deadline is midnight the following Wednesday (Saturday counts as a business day).
- Send it in a way that creates proof. The FTC rule requires the notice to be mailed or delivered. Send it by certified mail, return receipt requested, or hand-deliver it and get a signed acknowledgment. Emailing the cancellation is also advisable, but mail is the legally definitive method.
Within 10 business days of receiving your cancellation, the seller must:
- Refund all your money
- Return any trade-in you provided
- Tell you whether they will pick up any goods left at your home or if you should mail them back
If the seller fails to refund within 10 days, you are entitled to keep any goods delivered and are not required to pay for them.
What Most People Don’t Know
- Many states have broader protections. California, Texas, Florida, New York, and many other states have their own cooling-off laws that cover additional categories (gyms, dating services, hearing aids), apply to smaller purchase thresholds, or extend the cancellation period beyond 3 days. Check your state’s consumer protection laws.
- Home improvement contracts have separate protections in many states. If a contractor solicits work at your door, state law may give you a longer cancellation window specifically for home repair contracts — independent of the FTC rule.
- The seller’s failure to give you notice extends your right. If you were never given a cancellation form or the required disclosure language, your right to cancel may still be open. Courts have held that the 3-day window does not begin until the seller complies with the disclosure requirements.
- You can cancel even if you’ve already received or installed the goods. The seller is responsible for arranging pickup at their expense. You are not required to restore the original condition of anything installed (e.g., a water filter system that was mounted under your sink).
- Timeshares have a separate, sometimes longer, right to cancel. The FTC Cooling-Off Rule applies, but many states separately mandate 5–15 day rescission periods for timeshare contracts specifically.
Legal Basis
- 16 C.F.R. Part 429 — FTC Cooling-Off Rule (Door-to-Door Sales)
- 15 U.S.C. § 45 — FTC Act (unfair or deceptive acts or practices; enforcement authority)
- State consumer protection statutes (vary by state; often more protective than federal rule)
Frequently Asked Questions
The seller is refusing to refund my money after I sent the cancellation. What do I do?
File a complaint with the FTC at reportfraud.ftc.gov and with your state attorney general’s consumer protection office. You can also sue the seller in small claims court — the FTC rule violation makes this straightforward. Document everything: keep your certified mail receipt, the cancellation letter, and any communications with the seller.
I bought something at a trade show last Saturday. Is today (Tuesday) still within the window?
Yes — you have until midnight tonight (Tuesday). The sale date (Saturday) does not count, and Sunday is not a business day under the rule. So business day 1 is Monday, business day 2 is Tuesday. Your deadline is midnight tonight.
What if I paid by credit card? Can I also file a chargeback?
Yes. If the seller refuses to refund after you properly cancel, you have independent chargeback rights under the Fair Credit Billing Act (Regulation Z) — this is a separate remedy. Send your bank or card issuer a copy of the cancellation notice and explain that the seller failed to refund as required.
Does this rule apply to a contractor I called to come give a quote, who then sold me a service on the spot?
It depends. If you initiated the contact (you called them), and the sale was completed at your home, the FTC rule technically applies — the exemption only covers “emergency” same-day repairs you requested because of a sudden necessity. A scheduled estimate visit that turns into a sale is generally covered. However, the facts matter, and if you are not given cancellation notice, your window may be open longer regardless.