As part of its systematic regulatory review process, and following public comment, the Federal Trade Commission announced that it is retaining the Cooling Off Rule and proposed increasing its $25 exclusionary limit to $130 to account for inflation.
Currently, the Cooling Off Rule provides that it is unfair and deceptive for sellers engaged in “door-to-door” sales valued at more than $25 to fail to provide consumers with disclosures regarding their right to cancel the sales contract within three business days of the transaction. The FTC is proposing to increase the $25 exempted dollar amount to $130. This increase would reflect cumulative inflation since the Commission originally adopted the Rule in the early 1970s. Public comments on the proposed rule amendment will be accepted until March 4, 2013. Instructions for submitting comments can be found in the Federal Register notice. Comments may be filed electronically here.
The Commission vote approving the Federal Register notice concluding the regulatory review and proposing the non-substantive change to the Cooling Off Rule was 5-0. The notice will be published shortly and can be found on the FTC’s website and as a link to this press release. (FTC File No. P087109; the staff contacts are Sana C. Chriss, Attorney, FTC Southeast Region and Cindy A. Liebes, Director, FTC Southeast Region, 404-656-1390.)
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