As you probably know, if you buy something at a store and later change your mind, you may not be able to return the merchandise because the store's advertised return policy is generally binding. 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 of returning it thanks to the Federal Trade Commission's (FTC) Cooling-Off Rule. This rule gives you time to cancel purchases of $25.00 or more, and your right to a full refund extends until midnight of the third business day after the sale.

The Cooling-Off Rule applies to sales at the buyer's home, workplace, or dormitory, or at facilities the seller rented temporarily or short-term. These could be hotel or motel rooms, convention centers, fairgrounds, and restaurants. And, the rule applies even when you invite the salesperson to make a presentation in your home.

Under the Cooling-Off Rule, the salesperson must tell you about your cancellation rights at the time of sale. The salesperson also must give you two copies of a cancellation form (one to keep and one to send) and a copy of your contract or receipt. The contract or receipt must be dated, show the seller's name and address, and explain your right to cancel. The contract or receipt also must be in the same language that's used in the sales presentation.

Your job as the buyer is to ask about your rights and save these important documents. You'll need them if you want to return your purchase.

For more information about the FTC Cooling-Off Rule, including exceptions, directions for canceling purchases, and instructions for filing complaints with the FTC, visit the FTC Internet site.

3/1/00