Background
The FTC Cooling-Off Rule and Virginia’s Home Solicitation Sales Act
The federal Cooling-Off Rule (16 CFR 429) and Virginia’s Home Solicitation Sales Act (VA Code 59.1-21.2 et seq.) were created to protect consumers from high-pressure sales tactics in their own homes. They give you three business days to cancel certain contracts signed at your residence.
- Why it exists
- Before these laws, it was common for salespeople to show up at your door, create urgency, and pressure you into signing a contract before you had time to think, compare prices, or consult anyone. The cooling-off period ensures you always have time to reconsider a major purchase made under those circumstances.
- When it applies
- The rule applies when a contract for goods or services over $25 is signed somewhere other than the seller’s place of business. For home service companies like ours, that means contracts signed at your home during a service visit.
- When it does not apply
- The rule does not apply to repairs or maintenance you requested. If you called us because something is broken, we diagnosed the problem, and you authorized the repair, the cooling-off period does not apply to that repair work. It applies specifically to sales of new goods or services (like a full system replacement) that were not part of your original service request.
- This is a good thing
- We think this law is great. You should never feel pressured into a major purchase. A new water heater or generator is a significant investment, and you deserve time to think about it. Honest companies don’t need to pressure you into signing before you leave the room.