Difference between revisions of "Opting Out and Cooling-off Periods"

Promises stated clearly in a contract are called “explicit terms”. The parties specifically discuss and agree to such explicit terms. Other promises that allow a contract to be cancelled might be “implied” terms. For example, if a store displays a sign reading “No Refunds—Only Exchanges”, it could be argued this gives the buyer an additional contractual right of exchange, regardless of the quality of the product, since the consumer already has the legal right to return goods that are fundamentally defective.

There may be either explicit or implicit limits, or both, on the contractual right of exchange. There may also be time limits. For example, some stores advertise that the consumer has a limited number of days to bring any goods back for a refund. If there is no time limit specified, the law would probably say the consumer has a reasonable time to ask for the refund. The law does not have a set definition for “reasonable time”. It varies depending on, for example, what was bought, where it was bought, and what the implied terms of the contract were.

There may also be limits arising from the consumer’s use of the product. For example, a store may advertise that it accepts returns as long as the product is, essentially, unused. If there is no explicit term regarding use, the law would probably say that the product has to be resalable as new or near-new before the consumer could ask for a refund.

Refer to sections 17 to 56 of the Act and the Consumer Contracts Regulation for specifics. Here are some general guidelines.

Many consumers believe they can only cancel door-to-door sales contracts. However, the terms of the Business Practices and Consumer Protection Act actually apply to a wider range of transactions. The Act’s cancellation provisions apply to “direct sales contracts”—contracts for goods and services entered into in person at a place other than the supplier’s permanent place of business. This covers door-to-door sales and other situations.

If a direct seller makes a sale somewhere other than a permanent place of business, s. 21(1) says a consumer has 10 days after the date that the consumer receives the contract to cancel the contract (longer in some instances). This means that if a consumer receives a copy of a direct sales contract on February 1, for example, the consumer has up to and including February 11 to cancel.