Shopping at home can be convenient and enjoyable. But there may be times when you change your mind about an in-home purchase.

The Federal Trade Commission's (FTC) Cooling-Off Rule gives you three days to cancel purchases of $25 or more made at your home, workplace, or dormitory or at facilities rented by the seller on a temporary short-term basis, such as hotel or motel rooms, convention centers, fairgrounds, and restaurants.

Some Exceptions
Some types of sales can’t be canceled even if they occur in locations normally covered by the Cooling-Off Rule. The rule does not cover sales that:
• are under $25;
• are for goods or services not primarily intended for personal, family, or household use. The rule applies to courses of instruction or training;
• are made entirely by mail or telephone;
• are the result of prior negotiations at the seller’s permanent location where the goods are sold regularly;
• are needed to meet an emergency. Suppose insects suddenly invade your home, and you waive your right to cancel the contract;
• are made as part of your request for the seller to do repairs or maintenance on your personal property (purchases made beyond the maintenance or repair request are covered).

Also exempt from this 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 at least one permanent place of business;
• arts and crafts sold at fairs or locations such as shopping malls, civic centers, and schools.

Under this rule, the salesperson must tell you about your cancellation rights at the time of the sale. The salesperson also must give you two copies of a cancellation form (one to keep and one to send back) and 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. The contract or receipt must be in the same language that is used in the sales presentation.

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