DisputeVoice Consumer Authority Series

Home Solicitation Cancellation Rights

Federal and State Protections for Door-to-Door and Home-Solicited Sales

Published by DisputeVoice · Updated February 2026

The Legal Foundation: Why Cancellation Rights Exist

Home solicitation cancellation rights exist because of a well-documented power imbalance inherent in door-to-door sales transactions. When a seller arrives at a consumer's home—often uninvited—the consumer is operating in an environment that favors impulsive decision-making: they cannot easily compare prices, they may feel social pressure to be polite to someone standing in their living room, and they have not had time to research the seller's reputation, licensing, or the fair market price of the offered goods or services.

The Federal Trade Commission recognized this dynamic as early as 1972 when it promulgated the Trade Regulation Rule Concerning Cooling-Off Period for Sales Made at Homes or at Certain Other Locations, codified at 16 C.F.R. Part 429. The FTC found that high-pressure sales tactics in home settings constituted an unfair trade practice warranting a mandatory cooling-off period. Congress and state legislatures have since expanded upon this foundation.

The Federal Framework: FTC Cooling-Off Rule

Scope and Applicability

The FTC Cooling-Off Rule applies to any sale, lease, or rental of consumer goods or services in which the seller or the seller's representative personally solicits the sale and the buyer's agreement or offer to purchase is made at a place other than the seller's permanent place of business. The rule applies when the purchase price is $25 or more if the sale is made at the buyer's residence, or $130 or more if the sale is made at temporary locations such as hotel conference rooms, convention centers, fairgrounds, or rented offices. The $130 threshold for non-residential locations was established by a 2015 FTC amendment to account for inflation.

Critically, the rule applies even when the consumer initiates contact by inviting the salesperson to their home. If you call a roofing contractor and ask them to come to your house for an estimate, and you then sign a contract at your kitchen table, the Cooling-Off Rule applies because the sale was consummated at a location other than the seller's permanent business establishment.

What the Seller Must Do

At the time of the transaction, the seller is required by federal law to complete a series of mandatory actions. The seller must inform the buyer orally that they have the right to cancel the sale within three business days. The seller must provide the buyer with a dated receipt or copy of the contract, written in the same language as the oral sales presentation. The seller must provide the buyer with two completed copies of a "Notice of Right to Cancel" form, one for the buyer to keep and one to send to the seller if the buyer decides to cancel.

The Notice of Right to Cancel must contain the date of the transaction, the name and address of the seller, and a clear statement that the buyer may cancel the transaction at any time prior to midnight of the third business day after the date of the transaction. The form must also include a detachable cancellation form that the buyer can sign, date, and mail.

How to Exercise Your Cancellation Right

To cancel a door-to-door sale under the FTC rule, the buyer must sign and date one copy of the cancellation notice and mail it to the address provided by the seller. The cancellation is effective if it is mailed before midnight of the third business day after the sale. For the purpose of this rule, Saturday is a business day; Sunday and federal holidays are not. The safest method is to send the notice by certified mail, return receipt requested, to create a verifiable record of timely cancellation.

Once the buyer cancels, the seller has ten days to cancel and return any promissory note or other negotiable instrument signed by the buyer, refund all payments made under the contract, return any trade-in, and notify the buyer whether any goods already delivered will be picked up. The buyer must make the goods available for pickup in substantially as good condition as when received. If the seller does not pick up the goods within twenty days of the cancellation notice, the buyer may retain or dispose of them without further obligation.

What the Seller Cannot Do

The Cooling-Off Rule expressly prohibits several seller practices. The seller may not misrepresent the buyer's right to cancel. The seller may not fail to honor a valid cancellation request. The seller may not assign, sell, or transfer the buyer's contract or promissory note to a finance company or other third party until midnight of the fifth business day following the sale. This five-day hold period exists to ensure the cancellation window expires before the buyer's obligation can be transferred to a party that might claim "holder in due course" status and attempt to collect regardless of the cancellation.

Exemptions from the Rule

The FTC Cooling-Off Rule does not apply to all transactions. Exemptions include sales of real estate, insurance, or securities; sales made entirely by mail, telephone, or the internet; sales resulting from prior negotiations at the seller's permanent place of business where the goods are sold regularly; emergency home repairs requested by the buyer in good faith (though the buyer must provide a separate, dated, handwritten statement waiving the right to cancel); and sales of vehicles at temporary locations when the seller has at least one permanent place of business. However, even when a federal exemption applies, state law may still provide cancellation rights that the federal rule does not cover.

State Cancellation Laws: Broader Protections

Extended Cancellation Periods

Many states have enacted home solicitation statutes that go beyond the federal three-day cooling-off period. These state-level enhancements frequently include longer cancellation windows for general consumers in some jurisdictions, significantly extended periods for senior citizens (Illinois provides 15 business days for consumers age 65 and older), additional disclosure requirements beyond what the FTC mandates, and broader definitions of "home solicitation sale" that capture more transaction types.

Kentucky: Dual Protection for Roofing and General Home Solicitation

Kentucky provides two distinct statutory frameworks that protect homeowners. The first is the Kentucky Home Solicitation Sales Act (KRS 367.410–367.460), which mirrors the FTC Cooling-Off Rule and provides a three-business-day cancellation right for sales made at the buyer's home. Under KRS 367.450, if the seller has performed any services pursuant to a home solicitation sale prior to its cancellation, the seller is entitled to no compensation whatsoever. Any waiver of rights under this statute is void.

The second framework is Kentucky's Residential Roof Repair or Replacement Contracts statute (KRS 367.620–367.628), enacted in 2013. This statute provides roofing-specific protections including a mandatory cancellation right with written disclosure, a prohibition on advance payments during the cancellation period, a prohibition on contractors representing or negotiating insurance claims on the homeowner's behalf, and a prohibition on deductible rebates, inflated damage claims, and referral fee payments. The interplay between these two Kentucky statutes, combined with the federal Cooling-Off Rule, creates a three-layer protective framework for Kentucky homeowners facing door-to-door roofing solicitations.

State-by-State Variation: Key Considerations

When the Cancellation Right Is Triggered: Practical Scenarios

Scenario 1: Storm Chaser Knocks on Your Door

A roofing contractor appears at your home the day after a hailstorm, offers a "free inspection," identifies damage (real or fabricated), and asks you to sign a contract on the spot. This is a textbook home solicitation sale. You have at least three business days to cancel under federal law, and potentially longer under your state's home solicitation statute. If the contractor begins work before the cancellation period expires, they do so at their own risk and may be entitled to no compensation if you cancel.

Scenario 2: You Invite the Contractor to Your Home for an Estimate

Many homeowners mistakenly believe that because they initiated the contact, the Cooling-Off Rule does not apply. This is incorrect. The FTC rule explicitly covers sales "including those in response to or following an invitation by the buyer" as long as the buyer's agreement to purchase is made at a place other than the seller's permanent business. Your kitchen table is not the contractor's place of business.

Scenario 3: You Visit the Contractor's Showroom but Sign at Home

If you visit a contractor's permanent showroom for a consultation but later sign the contract at your home when the contractor delivers the final proposal, the Cooling-Off Rule applies because the sale was completed at a location other than the seller's place of business.

Scenario 4: Emergency Repairs After a Storm

The emergency repair exemption is narrow and requires the buyer to initiate the request, the situation to constitute a genuine emergency, and the buyer to provide a separate, handwritten, dated, and signed statement specifically waiving the cancellation right. A contractor cannot create the emergency (for example, by removing a tarp to expose damage) and then claim the exemption.

Enforcement and Remedies

Federal Enforcement

The FTC can bring enforcement actions against sellers who violate the Cooling-Off Rule, seeking civil penalties of up to $50,120 per violation, injunctive relief, and consumer redress. While individual consumers cannot bring a private lawsuit directly under the Cooling-Off Rule, violations may support claims under state UDAP statutes, which typically do provide a private right of action.

State Enforcement

State attorneys general have independent authority to enforce home solicitation sales laws through civil enforcement actions, cease-and-desist orders, and consumer protection lawsuits. Many states also empower individual consumers to bring private lawsuits for violations, with remedies that may include actual damages, statutory damages, treble damages for willful violations, attorney fees and court costs, contract rescission and restitution, and injunctive relief.

Practical Recommendations

• Never sign a contract at your front door or kitchen table without sleeping on it. Use the cancellation period as a research window, not just a safety net.
• Confirm you received two copies of the cancellation notice. If the seller did not provide them, the cancellation period has not started.
• Send cancellations by certified mail, return receipt requested. This creates a verifiable record of timely cancellation.
• Do not allow work to begin during the cancellation period. In some states, a contractor who starts work before the period expires forfeits all right to compensation.
• Keep the original contract and all correspondence. These documents are essential evidence if a dispute arises.
• Know your state's specific rules. The federal rule is the floor, not the ceiling. Your state may provide significantly more protection.

Conclusion

Home solicitation cancellation rights represent one of the most important consumer protection tools available to homeowners, and one of the least understood. The legal framework—federal, state, and in some cases local—is deliberately layered to ensure that homeowners are never permanently bound by a decision made under pressure, without adequate information, or in the comfort of their own home where sales resistance is lowest. Understanding these rights before you need them is the single most effective form of consumer self-defense.