A home solicitation sale is a sale of $25 or more in which the seller makes an in-person solicitation at the consumer’s home and the agreement is made at the consumer’s home. Kentucky law concerning home solicitation sales allows you three days to cancel a purchase, however, this law does not apply to sales involving insurance or goods provided in an emergency at the request of the buyer.
What does Kentucky law require regarding door-to-door sales?
Under Kentucky law, a seller must:
- Give the consumer a copy of the signed written agreement, including the date, the seller's name, the seller's address and essentially the same language used in the verbal sales presentation.
- Include language in the contract in substantially the following form:
You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right.
- Provide a notice of cancellation form notifying consumers of their right to cancel.
- Accept the consumer's right to cancel the sale, for any reason, within three business days of the sale.
How do I cancel a sale?
- You are not required to give a reason for canceling your purchase. You have the right to change your mind.
- To cancel a sale, a conusmer must give written notice to the seller at the address stated in the agreement. Your notice should briefly state that you do not wish to continue with the purchase. Keep a copy of your letter.
- Mail this notice by certified mail, return receipt requested, so that you will have proof of the date of mailing. Do this within three business days after you sign the purchase agreement.
- Keep the merchandise in good condition until it is claimed by the seller.
What are the seller's obligations if I cancel?
- The seller must return all payments made, any goods traded to the salesperson and any note or evidence of indebtedness within 10 days.
- The seller must make an effort to reclaim the purchased goods within 40 days.
- If the seller does not claim his goods within 40 days after cancellation, the merchandise becomes your property without any obligation to pay for the merchandise.
Are there any exceptions?
Yes. Be careful. You do not have three days to cancel all types of contracts. This cooling-off rule for home solicitation sales does not cover sales:
- made pursuant to prior negotiations at the seller's regular place of business;
- under $25
- for real estate, insurance, or securities; or
- for emergency home repairs, made at the buyer's request.
What about the sale of printed material?
When the encyclopedia salesperson knocks on your door, ask to see his registration receipt. All sellers of magazines, Bibles, periodicals or other printed material are required to register with the county court clerk in the county in which the solicitation takes place, if the sale is contingent upon a future event, such as a down payment or one or more installment payments. If the salesperson calls by telephone, he or she must tell you the number of the registration receipt.
The law that requires this registration does not apply to fundraising sales by school organizations if the superintendent of the school system has filed a written report with the county clerk that identifies what is being sold, the names of the students involved, and the duration of the sales.
If the seller does not show you his or her registration receipt or tell you the number of the receipt over the phone, all orders or contracts made can be voided.
All magazines received in Kentucky must have the expiration date of the subscriber's subscription on the address label or on the mailing wrapper in an easy to understand form.
Can a seller offer a referral discount?
If you are approached by a home solicitor who offers you a discount on your purchases if you will give him the names of other potential customers and at least one of them purchases the product, the seller has just broken Kentucky's Referral Sales law. The seller cannot give or offer a rebate at the time of a sale that hinges upon an event in the future, such as another person purchasing the product.
For more information:
If you have a problem in exercising your "three-day cooling off" right to cancel a home solicitation sale, or with a sale of printed material, write:
Office of Consumer Protection
1024 Capital Center Drive
Frankfort, KY 40601
Home Solicitation Sales
Subscription Sales of Printed Material