Things You May Not Know About Smart Bargain Shopping: Tip #10

If you buy something at a store and later change your mind, you may not be able to return the merchandise. However, if you buy an item in your home or at a location that is not the seller's permanent place of business you may be able to get your money back. The Federal Trade Commission's "Cooling-Off Rule" allows three days to cancel purchases of $25 or more. Under the Cooling-Off Rule, your right to cancel for 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 rented by the seller on a temporary or short-term basis, such as:

• Hotel or motel rooms
• Convention centers
• Fairgrounds
• Restaurants

The Cooling-Off 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.

There are exceptions to the Cooling-Off Rule as well as additional local laws that may enhance the rule.

The article Cooling-Off Rule and How to Cancel a Transaction offers a complete explanation of how it works.

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