Around this time of the year when it gets nicer outside, the inquiry team begins receiving more calls about direct sales contracts. Why might this be so you ask? Typically direct sales contracts are made when a salesperson comes to your home (uninvited) and sells you a good or service. This, however, does not apply to sales under $50. Picture a door to door vacuum cleaner salesperson or someone offering a lawn care service.

Getting a copy of the contract

If you enter into a direct sales contract, you should receive a copy of the contract immediately. From that time, you have exactly 10 days to cancel if you change your mind. It is very important to read the terms and conditions required for proper cancellation. Often this means sending your notice of cancellation either by registered mail or by fax (keep a copy of the successful transmission report).

Some other important things to know about direct sales contracts

  • If you are required to pay a deposit/down payment, the seller should never ask you to pay more than $100.
  • If you have properly cancelled a contract, the seller has 15 days to give you back any trade-in items or refund you the cash value of the trade in.

For more information on this topic, check out the consumer help section of our website. If you have a specific question or complaint, please contact us.


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