Three-Day right to cancel purchases
Many consumers mistakenly believe that they have three days to back out of any purchase they make. However, there are very few instances in which this right applies. Under Arizona law, consumers can cancel the following sales or services after the transaction is completed:
- Telephone Solicitation: You can cancel the order within three (3) business days from the delivery of the merchandise or premium (gift, bonus, prize or award) whichever is later. (A.R.S. §44-1276.D.)
- Telephone Solicitation of a Business Opportunity: Consumers can cancel a business opportunity contract or agreement at any time within ten (10) business days after the date that the consumer signs the contract or agreement or the date that the seller notifies the consumer in writing that the contract or agreement is accepted by the seller, whichever is later. (A.R.S. §44-1276.03)
- Sale of Credit Services: You can cancel services related to (1) improving your credit record and (2) obtaining an extension of credit, any time before midnight of the third day after the date of the contract was signed. (A.R.S. §44-1706(B))
- Dance Studio Contracts: These types of contracts can be cancelled within fifteen (15) days of the time you receive a copy of the contract. (A.R.S. §44-1744)
- Health Spa Contracts: You may cancel a health spa contract at any time before midnight of the third operating day after the consumer received a copy of the contract. (A.R.S. §44-1793)
- Discount Buying Services: Consumers have the right to cancel this type of contract within three (3) business days from that date into which the transaction was entered. (A.R.S. §44-1797.05)
All notices of cancellation must be in writing and mailed or delivered to the seller in the time specified.
Home Solicitation Sales:
The Federal Trade Commission’s Cooling-Off Rule gives buyers a right to cancel purchases of $25 or more for a full refund until midnight of the third business day after the sale. The Cooling-Off Rule only 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 and restaurants.
There are also exceptions to the Rule. For instance, the Rule does not apply to sales that are under $25; sales that involve real estate, insurance or securities; and other sales.
For more information on the Federal Cooling-Off Rule, salespersons’ obligations under the Rule, exceptions, and how to cancel your purchase under the Rule visit http://www.consumer.ftc.gov/articles/0176-protections-home-purchases-cooling-rule.