Updated on 06/26/2025
What Is the FTC’s Cooling-Off Rule?
The Cooling Off Rule gives you three days to cancel certain sales made at your home, workplace, or dormitory, or at a seller’s temporary location, like a hotel or motel room, convention center, fairground, or restaurant. The Rule also applies when you invite a salesperson to make a presentation in your home. But not all sales are covered.
Types of Sales the Rule Doesn’t Cover
Some types of sales can’t be canceled, even if they occur in places that the Cooling-Off Rule normally covers. The Rule doesn’t cover sales that are
- under $25 for sales made at your home
- under $130 for sales made at temporary locations
- for goods or services not mainly for personal, family, or household use (but the Rule applies to instruction or training courses, regardless of your reason for taking them)
- made entirely online, by mail, or by telephone
- made after completing negotiations at the seller’s permanent place of business, where the seller regularly sells the goods or services you bought
- needed to meet an emergency
- made because you asked the seller to visit your home to repair or perform maintenance on your personal property. (Things you buy beyond that repair or maintenance request are covered.)
In addition, the Rule doesn’t cover sales that involve
- real estate, insurance, or securities
- cars, vans, trucks, or other motor vehicles sold at temporary locations, if the seller has at least one permanent place of business
- arts or crafts sold at fairs or places like shopping malls, civic centers, and schools
The Seller Must Tell You About Your Right To Cancel
By law, the seller must tell you at the time of the sale about your right to cancel. The seller also must give you
- Two copies of a cancellation form. One copy is for you to keep. The other copy is to send to the seller if you decide to cancel your purchase.
- A copy of your contract or receipt. The contract or receipt should be dated, show the name and address of the seller, and explain your right to cancel.
- Note: The contract or receipt must be in the same language that’s used in the sales presentation.
How To Cancel a Sale
Your right to cancel for a full refund lasts until midnight of the third business day after the sale. Saturday is considered a business day, but Sundays and federal holidays are not. So
- If the sale happens on a Monday in a week without a federal holiday, you have until midnight on Thursday to cancel.
- If the sale happens on a Monday and Tuesday is a federal holiday, you have until midnight on Friday to cancel.
- If the sale happens on a Friday, you have until midnight on Tuesday to cancel, if there are no federal holidays on Monday or Tuesday.
- If the sale happens on a Friday and the following Monday is a federal holiday, you have until midnight on Wednesday to cancel.
Note: You don’t have to give a reason for canceling. You have a right to change your mind.
- To cancel a sale, sign, and date one copy of the cancellation form. Mail it to the address given for cancellations. Make sure the envelope is postmarked before midnight of the third business day after the contract date.
- If the seller didn’t give you cancellation forms, write a cancellation letter. It must be postmarked within three business days of the sale.
- Send the cancellation form or letter by certified mail. You’ll get a return receipt, so you have proof of when you mailed it and when it was delivered. Also, keep a copy of the letter or cancellation form for your records.
The Seller’s Obligations If You Cancel
If you cancel your purchase, the seller has 10 days to
- cancel and return any check you signed
- refund all your money
- return any property you might have traded in
- tell you if any product you still have will be picked up or abandoned
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 the seller gave you any items, you must make them available to the seller in as good condition as when you got them. If you don’t make the items available to the seller — or if you agree to return them but don’t — you remain responsible for paying the seller as you agreed under the contract.
State Telemarketing “Cooling Periods”
In addition to the Federal Cooling period, each state has a cooling period for telemarketing sales. If you are not giving clients who purchase online or over the phone three (3) days to request a refund. Failure to do this in states is an absolute violation and State may automatically rescind the agreement with the client.
The following are not exclusive, but examples of these types of laws:
Ohio
Telemarketing sales: seven days or until buyer signs a written agreement: Ohio’s Telephone Solicitation Sales Act (starting at R.C. 4719.01) requires the telemarketer to either obtain a signed written confirmation or provide the buyer a seven-day notice of cancellation.
Utah
The three day right to cancel information must be provided if the purchaser, over the telephone pays for or agrees to commit to payment for goods or services prior to or upon receipt by the purchaser of the goods or services. Telephone Fraud Prevention Act, Utah Code §13-26-5.
California
(1) At the time the solicitation is made, the telephonic seller shall inform the buyer orally of the following:
(A) The buyer has the right to cancel the contract or offer until midnight of the third business day after the day on which the buyer receives the product or products ordered or the notice of confirmation of services ordered. This right of cancellation begins to run from the date of the buyer’s receipt of the product or products ordered or, in the case of services ordered, from the buyer’s receipt of the notice of confirmation of services ordered. California Business and Professions Code Sections 17511-17513 Article 1.4. Telephonic Sellers
Florida
(2) A commercial telephone seller who engages a salesperson to make, or cause to be made, a telephone sales call shall not make or submit any charge to the purchaser’s credit card account or make or cause to be made any electronic transfer of funds until after the commercial telephone seller receives from the purchaser a copy of the contract, signed by the purchaser, which complies with this section. The commercial telephone seller shall then send the purchaser a written confirmation of the sale.
(3) The written contract must contain an explanation of the purchaser’s rights under this section and a statement indicating when notice of cancellation should be sent. The purchaser may give notice of cancellation to the commercial telephone seller in writing within 3 business days after receipt of the confirmation. If the commercial telephone seller has not provided an address for receipt of such notice, cancellation is effective by mailing the notice to the department.
(4) Notice of cancellation by the commercial telephone seller shall be given by certified mail, return receipt requested, and shall be effective when mailed. Notice of cancellation given by the purchaser need not take a particular form and is sufficient if it indicates, by any form of written expression, the name and address of the purchaser and the purchaser’s stated intention not to be bound by the sale.
FLORIDA TELEMARKETING ACT (ss. 501.601-501.626) 501.615
Texas
Sec. 601.051. CONSUMER’S RIGHT TO CANCEL. In addition to any other rights or remedies available, a consumer may cancel a consumer transaction not later than midnight of the third business day after the date the consumer signs an agreement or offer to purchase. Title 12 Chapter 601 Cancellation of Certain Transactions. (Consumer Transactions include telephone sales).
Michigan
Three Day Cancellation Rule 1 – The Home Solicitation Sales Act
Michigan’s Home Solicitation Sales Act (HSSA) gives consumers who are solicited in their homes three business days to decide whether to cancel a contract. Here are some basic points about the HSSA.
You are protected by Michigan’s HSSA when:
- The solicitation for the sale was initiated by the seller, through a personal, written, or telephone contact;
- The solicitation was received at your home (this includes mail or telephone calls, but not newspaper ads);
- Your agreement to purchase (contract) was given to the salesperson at your home, AND
- The goods or services purchased are worth more than $25.
Minnesota
325G.07 BUYER’S RIGHT TO CANCEL.
In addition to any other rights the buyer may have, the buyer has the right to cancel a home solicitation sale until midnight of the third business day after the day on which the home solicitation sale occurs. Cancellation is evidenced by the buyer giving written notice of cancellation to the seller at the address stated in the agreement or offer to purchase. Notice of cancellation, if given by mail, is effective upon deposit in a mailbox, properly addressed to the seller and postage prepaid. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the buyer not to be bound by the home solicitation sale.
Example Cooling Period Language:
Client acknowledges reading and understanding the information contained on the front of this Enrollment Form, including without limitation, the Law, Waiver, and Arbitration Clause, and agrees to be bound hereby.
This receipt is proof of purchase. Please review the front and back of this Agreement for all terms & conditions. Also, see the attached Notice of Cancellation form for an explanation of your rights. You, the buyer, may cancel this transaction at any time prior to midnight of the third day after the date of this transaction. All sales are final after the respective three (3) days.
NOTICE OF CANCELLATION Transaction Date:
You may cancel this transaction, without penalty or obligation within three (3) days from the above date, after which the sale is final. If you cancel, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within ten (10) days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be canceled. All cancellation requests must be in writing. If you cancel, you must email this Notice to [insert E-mail Address]. If you have questions about cancellation or your request you may contact customer service at [Insert Telephone Number].
Not later than midnight of
I hereby cancel this transaction.
Purchasers’ Signature (required): Date (required):
Clearly Print Your First and Last Name (required)
The Focus Visibility Cooling Off Period
We use seven (7) business days from the date of purchase, instead of the FTC’s three business days.
Our customers can cancel transactions through our billing portal.
Please have a look at our Refund Policy for more information.