Cooling-Off Period for Door-to-Door Sales, "Notice of Cancellation"

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Title 16— Commercial Practices CHAPTER I— FEDERAL TRADE COMMISSION SUBCHAPTER D— -TRADE REGULATION RULES PART 429— COOLING-OFF PERIOD FOR DOOR-TO-DOOR SALES "Notice of Cancellation" On October 26,1972, the Federal Trade Commission published at 37 FR 22933 the Trade Regulation Rule relating to a cooling-off period for door-to-door sales. The Commission believes that it is in the public interest to modify some of the language used in the original rule and hereby publishes the amended provision o f the rule. The Commission has deter­ mined that It is unnecessary for it to FEDERAL REGISTER, VOL. 38, NO. 210— THURSDAY, NOVEMBER 1, 1973

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RULES A N D REGULATIONS 30105 publish notice of proposed rulemaking and to receive comments on this modifi­ cation in accordance with 5 U.S.C. sec­ tion 553 (b) and (c ), or to delay the effec­ tive date of the rule for 30 days in accordance with 5 U.S.C. section 553(d), because it finds that the modified provi­ sion constitutes merely an editorial change in the language of the rule and is not intended to create, alter or revoke any substantive rights or duties provided by the original language of the rule. Set forth below is the full text of re­ vised paragraph (b) of § 429.1, The Rule, in which only the fourth paragraph Of the “Notice of Cancellation” is hereby amended:

§ 429.1 The Rule.

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* ■ * * . * (b) Pail to furnish each buyer, at the time he signs the door-to-door sales con­ tract or otherwise agrees to buy con­ sumer goods or services from the seller, a completed form in duplicate, captioned “NOTICE OF CANCELLATION”, which shall be attached to the contract or re­ ceipt and easily detachable, and which shall contain in ten point bold face type the following information and state­ ments in the same language, e.g., Span­ ish, as that used in the contract: Notice of Cancellation [enter date of transaction] (Date) YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS PROM THE ABOVE DATE.

IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EX­ ECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CAN­ CELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANS­ ACTION WILL BE CANCELED. IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU WISH, COMPLY WITH THE INSTRUC­ TIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE SELLER’S EXPENSE AND RISK. IF YOU DO MAKE THE GOODS AVAIL­ ABLE TO THE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN ■ 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PEFORMANCE OF ALL OBLIGATIONS UN­ DER THE CONTRACT.

TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM, TO [Name of seller], AT [address of seller’s place of business] NOT LATER THAN MIDNIGHT O F ------------------ - (date) I HEREBY CANCEL THIS TRANSACTION. (Date) (Buyer’s signature) Effective: November 1,1973. By the Commission.

Issued: October 29,1973. [seal] Charles A. T obin, Secretary.

[FR Doc.73-23292 Filed 10-31-73;8:45 am]