The Oregon Home Solicitation Sales Act

door to door sales picture

By Brenda Bradley

The Oregon Home Solicitation Sales Act, ORS 83.710-83.750, can provide a powerful tool to help consumers rescind a door-to-door or other sale made at a place other than the seller’s main or permanent place of business.  The Home Solicitation Sales Act generally applies to sales, leases or rentals of goods or services in an amount of at least $25 and purchased primarily for personal, family or household purposes.  ORS 83.710 and ORS 83.010.  It requires that sellers provide buyers with a written agreement – in  the same language that the seller used for the sales presentation – containing specified information, including a notice informing the buyer that he or she has a three-day right to cancel.  See ORS 83.730.  Importantly, if the seller fails to provide a written agreement that complies with ORS 83.730, the buyer’s right to cancel continues until three business days after proper notice is given.  See ORS 83.730(4) and 83.720(1).  There is a similar FTC rule governing “door-to-door sales” – see 16 C.F.R. §429.0, et seq. – although the federal rule may not allow consumers a continuing right to cancel.

Following is a checklist intended to aid practitioners in identifying potential violations which may give consumers rescission rights under the Oregon Home Solicitation Sales Act.  For more information, see ORS 83.710-83.750 and Volume 2, Consumer Law in Oregon (OSB Legal Pubs 2013).

Checklist of Potential Violations – Oregon Home Solicitation Sales Act

General requirements – see ORS 83.730:

         Was there a written agreement, signed by the buyer?

         Copy of the written agreement given to the buyer?

         Buyer’s copy of written agreement has been fully completed?

         Date of transaction matches the date of buyer’s signature?

         Written agreement is in the same language that was principally used in the sales presentation?

         Buyer given two copies of a Notice of Buyer’s Right to Cancel?

         Is the Notice of Buyer’s Right to Cancel printed in conspicuous, 10-point (like this checklist) or larger type?

         Sales rep orally informed the buyer of the right to cancel?

Specific information required in the written agreement – see ORS 83.730(1)(b):

         Date of the transaction:  Must be the date on which the buyer actually signs the written agreement

         Seller’s name and address of seller’s “place of business”

         Statement in 10-point or larger bold type, in immediate proximity to the space for the buyer’s signature:

“You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction.  See the attached notice of buyer’s right to cancel for an explanation of the right to cancel.”

         (If both copies of the notice of Notice of Buyer’s Right to Cancel are not actually attached to the written agreement, the statement next to the buyer’s signature must state the actual location of the Notice of Buyer’s Right to Cancel.)

Specific information required in (both copies of) the Notice of Buyer’s Right to Cancel – see ORS 83.730(1)(c):

         Name of the seller

         Address of seller’s “place of business”1

         Date of the transaction

         Date by which buyer can give (mail) notice of cancellation:  Must be at least three “business days”  after the date of the transaction

         The Notice of Buyer’s Right to Cancel must read as follows, or use the language required by the FTC rule (p. 2);

Language required by ORS 83.730(2):

NOTICE OF BUYER’S RIGHT TO CANCEL

(1) (Date) You, the buyer, may cancel this agreement without any penalty, cancellation fee or other financial obligation by mailing or delivering a notice to the seller within THREE BUSINESS DAYS from the above date.

(2) If you cancel:

(a) Any property you traded in, any payments you made under the sales contract and any checks or notes you signed will be returned within 10 business days following receipt by the seller of your notice of cancellation. Any security interest that arises from the transaction will be canceled.

(b) You may either make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under the sales contract or you may comply with the seller’s instructions regarding the return shipment of the goods at the seller’s expense and risk.

(c) If you make the goods available to the seller at your residence and the seller does not pick up the goods within 20 days of the date of your notice of cancellation, you may keep or discard the goods without further obligation.

(d) If you do not make the goods available to the seller, or if you agree to return the goods to the seller and you do not return the goods, you must perform all of your obligations under the sales contract.

(3) To cancel this transaction, mail or deliver a signed and dated copy of this notice or other written expression of your intention to cancel, or send a telegram, to (name of seller) at (address of seller’s place of business) not later than 12 midnight on (date), the third business day after you signed the written agreement or offer to purchase.

I HEREBY CANCEL THIS TRANSACTION. _______________________ (Signature of buyer) (Date)___________________

Language required by the FTC Rule, 16 C.F.R. 429.1(b):

NOTICE OF CANCELLATION [or “NOTICE OF RIGHT TO CANCEL”]

[enter date of transaction]

_________________

(Date)

You may CANCEL this transaction, without any Penalty or Obligation, within THREE BUSINESS DAYS from the above date.

If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within TEN BUSINESS DAYS following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be cancelled.

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 instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.

If you do make the goods available 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 performance of all obligations under 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 OF [date].

I HEREBY CANCEL THIS TRANSACTION.

(Date) _______________________

(Buyer’s signature) _______________________

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[1] See ORS 83.710(1)(a)(C): This should mean the seller’s main or permanent branch office or permanent local address.

[2] See ORS 83.710(1)(c): “Business day” does not include a Saturday, Sunday, or legal holiday.