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FTC: No changes to Cooling-off Rule

February 1, 2013
The Federal Trade Commission has completed a systematic review of the Cooling-Off Rule and determined that no changes to the rule are warranted except for potentially increasing the monetary threshold at which the rule applies.
 In making its determination, the FTC rejected several proposed changes to the rule that would have affected automobile dealers, including a proposal to expand the rule’s scope to apply to the sale of used cars at a dealer’s premises.
 
The Cooling-Off Rule requires sellers who are engaged in door-to-door sales of consumer goods or services with a purchase price of $25 or more to provide the buyer with certain oral and written disclosures regarding the buyer’s right to cancel the contract within three business days from the date of the transaction. 
 
Door-to-door sales include those made at a place other than the seller’s place of business; however the Rule does not apply to “sellers of automobiles, vans, trucks or other motor vehicles sold at auctions, tent sales or other temporary places of business, provided that the seller is a seller of vehicles with a permanent place of business.” 
 
The FTC’s sole proposed change to the rule would increase the threshold at which the rule applies from $25 to $130, to account for inflation that has occurred since the FTC first issued the rule in 1972. 
 
The complete FTC review is at http://ftc.gov/opa/2012/12/coolingoff.shtm
 
 

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