Guide · Consumer Protection
Consumer Contracts and Cancellation Rights: A Comprehensive Guide to Auto-Renewal, Cooling-Off, and Rescission
15 U.S.C. § 6101
- Type
- Guide
- Jurisdiction
- National
- Date
- 2024-02-21
- Topic
- Consumer Protection
This guide covers consumer cancellation rights and the contracts that create them. Part 1 states the default rule that a signed contract binds and explains why the three-day right most people believe in does not generally exist. Part 2 covers the federal cooling-off rule for sales away from a seller's place of business and the notice failures that extend it indefinitely. Part 3 covers product-specific rescission rights, including timeshares and health clubs. Part 4 covers auto-renewal and negative option requirements and the design patterns they target. Part 5 covers home-secured rescission and the holder rule. Part 6 covers misrepresentation and deceptive practices claims. Part 7 covers the payment-side remedies that work when no cancellation right exists. Parts 8 through 12 cover escalation, arbitration, electronic contracting, business compliance, and the errors that recur.
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