Cooling Off
Cancellation rights (‘cooling-off’)
A customer has 10 business days to cancel the unsolicited sales agreement – for any reason – without penalty. This is known as the ‘cooling off period’.
uThe cooling off period is calculated from the beginning of the first business day after the day on which the customer signed the agreement.
Did you know the cooling off period is extended to 3 months when:
- sell outside permitted hours
- don’t disclose the purpose of visit & identity
- don’t leave when asked to
The cooling off period can be extended to six months if:
- we don’t tell the customer about the cooling off period
- don’t provide a copy of the agreement to the customer
As a salesperson you must:
- You must tell the customer about their cooling-off rights before they enter the agreement
- inform your customer of their rights to cancel the agreement (the cooling off period)
- ensure that you and the customer sign the agreement and any amendments to the agreement – door to door only
- provide the customer with a written copy of the agreement immediately after signing – door to door only.
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Customers have extended cooling-off periods if we don’t follow the correct process
A customer may terminate an agreement up to three months after it is made if the salesperson telephoned or visited the customer outside of the permitted selling hours, did not disclose the purpose of the call or visit or did not identify him/herself.