FTC Increases Threshold for Customer Disclosures for Sales at Temporary Locations
Sales of less than $130 that are made at temporary locations will no longer require customer disclosures informing the buyer of their right to cancel within three days.
The Federal Trade Commission (FTC) approved the increase to $130 from $25 in a final amendment to its Cooling-Off Rule for door-to-door sales.
Sellers at a buyer's residence are required to provide consumers with disclosures outlining their right to cancel the sales contract within three business days of a transaction valued at $25 or more.
The Commission considered increasing the in-home minimum also to $130, but there was significant concern about high-pressure sales tactics and deception that can occur during these types of sales pitches.
These tactics were not as problematic outside the home, prompting the Commission to increase the threshold for temporary locations to reduce compliance burdens for sellers while still offering some protection for consumers.
The amendment was first proposed in December 2012 and was finalized after a period for public comment.