Educational Consumer Tips

Door To Door Sales

Author: Better Business Bureau

On door-to-door sale of $25 or more, a Federal Trade Commission (FTC) rule gives consumers the right to cancel a transaction up until midnight of the third business day after the date of purchase. The rule applies not only to sales made in your home, but also to sales agreements made anywhere other than the seller's normal place of business, e.g., "parties" given in private homes, sales made out of rented hotel/motel rooms or restaurants. The rule also applies if you invite a merchant into your home or into someone else's home, or if you meet on a street corner. The rule does not apply to sale made totally by mail or phone, or to real estate, insurance or securities sales, or emergency home repairs.

The rule requires the salesperson to tell you of your right to cancel, give you a contract or receipt, and give you two copies of your notice of cancellation form. Check to see that the contract or receipt is dated and contains the name and address of the company, and determine from local authorities (police, county or city clerk, etc.) whether or not a company is properly licensed to do business in you area. If you are not notified of your right to cancel or given the required documents, report this to your local BBB, consumer protection agency or regional FTC office.