Cancel This Sale! - The Three-Day Rule
By Jeffrey A. Babener
Excerpted from Network Marketing: What You Should
Know, Jeffrey Babener, Legaline Publications
MLM consultant practice tips. An experienced
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The Nitty Gritty Details
The rule provides that the "Notice of Cancellation" form must be easily detachable from the receipt or invoice and must be provided in duplicate. And it must be completed and furnished to the buyer at the time of the agreement. The FTC has gone so far as to specify the size of type on the form. Here's a brief summary of some of the requirements:
1. The purchaser must be informed that he may cancel the transaction without penalty or obligation within three business days from the date of sale.
2. The customer is informed that, if he does cancel the sale, any payments made will be returned within ten (10) business days following receipt by the seller of the cancellation notice.
3. If the customer cancels, he must make the merchandise available in substantially good condition to the seller at the customer's residence or the customer may, at his option, return the merchandise at the seller's expense and risk if the seller has a policy permitting such a method of return.
4. If the customer makes the merchandise available to the seller and the seller does not pick it up within 20 days of the date of a notice of cancellation, the customer may retain or dispose of the merchandise without further obligation.
5. If the customer does not make the merchandise available to the seller, he remains on the hook.
6. The customer may cancel the sale by mail or by personal delivery of the signed and dated cancellation notice or by any other written form of notice, including a telegram.
Several other specifics should be kept in mind for compliance with this FTC rule:
1. The seller must furnish the buyer with a receipt or copy of the sales order at the time of purchase.
2. The sales order must be signed by the purchaser.
3. The seller must orally inform the buyer at the time he signs the contract or purchases his goods of his right to cancel.
Obviously, there is an absolute prohibition to place a provision in the purchase order which provides that the buyer waives his right to cancel the FTC rule.
Multilevel marketing companies and distributors should also be aware that there are certain types of sales that are exempt from the door-to-door rule.
NETWORK MARKETING/MLM consultant practice
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an important component for NETWORK MARKETING/MLM startup. Careful
Choice of NETWORK MARKETING/MLM Software is another component of NETWORK
MARKETING/MLM Corporate. An NETWORK MARKETING/MLM Consultant and
NETWORK MARKETING/MLM Law and NETWORK MARKETING/MLM Legal is part of
the NETWORK MARKETING/MLM Startup Team. NETWORK MARKETING/MLM
Compensation must be reviewed by an NETWORK MARKETING/MLM Consulting
standpoint by an NETWORK MARKETING/MLM Consultant and NETWORK MARKETING/MLM
Legal and NETWORK MARKETING/MLM Law professional and programmed by a
NETWORK MARKETING/MLM Software and NETWORK MARKETING/MLM Technology