CONSUMER PROTECTION - “THREE DAY RIGHT TO CANCEL”

Article by BPBS attorney Steven Davis, 513 533-2027

Many contracts for goods or services between individual consumers and certain types of businesses are subject to very broad rights of cancellation by Ohio consumers, and by consumers in other states with similar laws.

So you think this law doesn’t apply to you? Think again. You probably hire contractors like plumbers, painters, electricians, furnace and AC technicians, carpenters, roofers, carpet companies, home remodelers, deck installers, architects, interior designers, home inspectors, landscapers and lawn services, house and carpet cleaners, and even accountants and appraisers. Or perhaps you own such a company.

Either way, here’s a little known but important fact. Ohio consumer protection laws give consumers a “three day right to cancel.” It applies to many companies like these, and it may be extended weeks, months, or even years longer than the three days that you expect. Take a look at the written contract for the job. Does it have a properly-worded “three-day right to cancel” written in bold face type placed immediately adjacent to the signature line of the customer? If not, and if this law applies, guess what? The consumer’s “three day” right to cancel hasn’t even started running yet. The consumer may cancel the contract and not pay, or obtain a refund, even if the job is already completed and was done properly.

This law permits a consumer to keep the benefit of all the work, products, and services furnished under the contract, and still get a full refund or avoid paying. Imagine that, FREE work!

Great for consumers! Devastating for small business owners caught in this trap!

Want more information? Contact any of us at BPBS, or click here to read more.