With certain exceptions, the Federal Trade Commission's Cooling-Off Rule gives consumers a three-day right to cancel purchases worth $25 or more for a full refund, states the FTC. The right ends on the midnight of the third business day after the sale. In addition, many states have statutes governing consumer refunds, notes FindLaw. For instance, Alabama consumer laws do not give purchasers the right to revoke sale agreements. Returns and refunds therefore depend on an individual seller's sale policies.Continue Reading
The Federal Trade Commission's Cooling-Off Rule covers sales made in the purchaser's home or seller's temporary location such as a convention center or restaurant, according to the FTC. However, this law does not cover sales under $25 made in the purchaser's home; sales worth less than $130 conducted at temporary locations; or sales made over the phone, by mail or online.
The rule does not apply to purchases intended to meet an emergency, nor to services or goods not meant for household, family or personal use, warns the FTC. Securities, real estate and insurance transactions are also exempt from the rule. The law does not require purchasers to provide a reason for their cancellations. Once a buyer has revoked a sale, sellers must return, within 10 days, trade-ins, cancel and return buyers' checks, or offer a full refundLearn more about Law