Jeff Sovern on Cooling Off Periods and Consumer Protection

November 19, 2012

In the Media
Op-Ed
Business Forum: Make sure consumers use protection rules
By Jeff Sovern
Pittsburgh-Post Gazette
November 19, 2012

Excerpt:

If you have ever gotten a mortgage, had work done on your home, or bought something sold by a telemarketer, you have probably received a notice saying you have three days to back out of the transaction. Numerous federal and state laws give consumers the right to cancel these types of transactions, and plenty others. Such cooling-off periods are thought to give consumers the chance to fight back after they have succumbed to a hard sell, a sudden impulse or just made a foolish purchase.

The only problem is that consumers don't use cooling-off periods. Just ask the businesses that give the notices. When my research assistants did that, more than a third said consumers never backed out, and nearly three-quarters said that 2 percent or fewer consumers cancelled.