Markets Wired

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.

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.)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.