Sales Cooling Off Cancel Rule Made Apply Eslpod Service

Sometimes "purchasers" (people who buy something) experience "buyer's remorse," or strong feelings of "regret" (wishing that one had not done something) about the purchase and a strong desire to "undo" (make it so that something never happened) the sale. The Federal Trade Commission (FTC) has a "cooling-off rule" that gives consumers three days to cancel certain sales. If the consumer changes his or her mind within 72 hours of the sale, he or she can cancel the service or return the product and request a full refund.

The cooling-off rule generally "applies" (affects; is relevant to) to sales made at a home or workplace, or at a temporary seller's location. But it does not apply to home-based sales of less than $25 or other sales of less than $130, sales that are made online or over the phone, or products and services that are needed to "handle" (deal with; find a solution to) an emergency situation.

Some industries are "exempted from" (do not have to follow the rules of) the cooling-off rule. For example, the rule does not apply to transactions involving "real estate" (the sale of buildings and/or "property" (land)), insurance, and "securities" (investments). It also does not apply to "arts and crafts" (artistic objects made by hand, not manufactured in a factory) sold at fairs, malls, or schools.

The cooling-off rule might seem to be a "bad deal" (something that creates problems and is unfair) for the seller, but for some companies, it can be beneficial. When consumers have three days to "change their minds" (make a different decision), the purchase is associated with less "risk" (the likelihood of a problem). Since only some of the buyers will actually cancel the service, the company may actually make more sales and more money in the end.