The FTC Cooling-Off Rule and door to door solar sales
Many residential solar contracts are signed at the kitchen table, often on a tablet, after a long visit. That setting is exactly what the FTC's Cooling-Off Rule was written for. Homeowners who say they tried to cancel within a few days, and were refused, often have a story that turns on this rule and its paperwork. This guide summarizes the rule at a general level. State home solicitation laws can add more, so confirm the rules that apply with counsel.
What the rule covers
Under the FTC's Cooling-Off Rule, 16 CFR Part 429, a buyer can cancel a covered sale until midnight of the third business day after the sale. The rule covers sales of 25 dollars or more made at the buyer's home, and sales of 130 dollars or more made at other locations away from the seller's place of business, such as a hotel room or a fairground.
Saturdays count as business days. Sundays and federal holidays do not. The Consumer Financial Protection Bureau's 2024 solar financing spotlight noted that door to door solar contracts may fall under this rule.
What is excluded
The rule does not cover every transaction. Among its exclusions are transactions that carry a right of rescission under the Truth in Lending Act, sales made entirely by phone or mail, buyer initiated emergencies where the buyer waives the right in a signed, handwritten statement, and repair or maintenance visits the buyer asked for. In a solar case, whether the financing carries a TILA rescission right can therefore decide which cancellation right applies.
Why the paperwork matters
The rule requires the seller to tell the buyer about the right to cancel at the time of the sale and to give the buyer the cancellation paperwork the rule describes. Read 16 CFR 429.1 for the exact requirements. In solar cases, ask whether the homeowner ever received a copy of the contract and a cancellation form, in what form, and in what language.
Homeowners who signed on a tablet often say they never received a complete copy. That detail, and the date and method of any cancellation attempt, belong in the first intake call.
State law can add more
Many states have their own home solicitation sales laws, and some add longer cancellation periods or other protections. Check the law of the state where the home is before relying on the federal three day window alone.
What to ask the homeowner
- Where was the contract signed: at home, somewhere else, or online?
- What was the date, and when did they first try to cancel?
- How did they try to cancel: phone, text, email or letter, and do they have a copy?
- Did they receive the contract and a cancellation form at the time, and in what language?
- Was the system financed, and by whom?
Where Telgrow fits
We talk with homeowners every week whose solar contract went wrong. Homeowners who ask to speak with a lawyer are told participating firms pay to advertise, then connected with a participating firm licensed in their state. You choose your states and topics, and contact details and state are confirmed before you get the lead.
Telgrow is not a law firm. We do not evaluate claims or recommend a firm to homeowners. Firms pay for advertising only, price never depends on whether a homeowner hires you, and we take no part of your fees.
Questions
How long does a homeowner have to cancel a door to door solar sale?
Under the FTC's Cooling-Off Rule, a buyer generally has until midnight of the third business day after a covered sale. Saturdays count as business days; Sundays and federal holidays do not. State laws can add more.
Does the Cooling-Off Rule apply to every solar sale?
No. It covers sales of 25 dollars or more at the buyer's home and 130 dollars or more at other off premises locations, and it excludes some transactions, including those with a TILA rescission right and sales made entirely by phone or mail.
Is this legal advice?
No. It is a general summary of a federal rule. Confirm what applies to a specific sale with counsel.
Homeowners with solar contract problems, sent to your intake team
We talk with homeowners every week whose solar contract went wrong: savings that never showed up, financing they did not understand, or a cancellation that was refused. Homeowners who ask to speak with a lawyer are told participating firms pay to advertise, then connected with a participating firm licensed in their state.
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