Cooling-off Period

Argentina
Five (5) calendar days cooling off period after either delivery or invoice date, whichever is the later.

Australia
Legislation in all States and Territories contains cooling-off provisions. Generally, this is for sales (cash or credit) in excess of AU$50. The laws require agreemens to be in writing and signed by the purchaser at the time the agreement is made. A prescribed statement (known as a Schedule One) is required to be given to the purchaser, advising the purchaser of his right to terminate the agreement within ten (10) days of signing the contract. This requirement is strictly enforced by authorities. The salesperson must carry a form of identity showing full name, business address and the name of the company represented. It has to be produced on first approach to a potential purchaser and at any time thereafter when requested. Failure to do so could invalidate the sale.

Austria
Under Austrian consumer protection legislation, every sales contract made away from the business premises of the seller is subject to a seven (7) day period of reflection on the purchase or lease, with the right to cancel without obligation or penalty. Sales must have been initiated by the seller or his representative. Most sales made away from the seller’s place of business are covered. The seller must give the buyer a receipt or copy of the contract, showing the name and address of the seller and notice of the buyer’s right to cancel the contract. If the buyer cancels the sale, the seller must rescind the contract. Any deposit or down payment must be refunded with interest at 5%. The buyer must enable the seller to recover any goods already delivered.

Belgium
Consumer protection provisions are defined in the Law of July 1991 on commercial practices, consumer protection and information. This law provides for a compulsory cooling-off period for sales made to a private consumer (non-professional use), for distance selling (mail order, telephone selling, computer selling) and for sales made away from business premises.

The cooling-off period is not compulsory when the consumer makes a prior and express request (a telephone call does not constitute such a request). The company must provide proof of the consumer’s prior and express request.

The cooling-off period does not apply to cash sales made at trade fairs and exhibitions for amounts under BEF8600.

For sales which fall under this law there must be a contract in writing, a copy of which is given to the consumer at the latest moment when the order is made. This contract must include a cancellation clause corresponding to the terms of the law, failing which the contract is null and void. This clause must be mentioned on the recto of the first page of the contract and in a box distinct from the rest of the text.

The consumer does not have the right to refuse the protection given by law. The right of cancellation must be exercised by registered letter sent within seven (7) working days from the day after the order is given. Cancellation is free of charge to the consumer.

Brazil
The Code of Consumer Protection Law (Law 8.078 of 09/11/90), defines the consumer’s rights; broaches of services’ and goods’ quality, of prevention and reparation of injuries; disposes about commercial practices which are prejudicial to consumer and other relationships of consumption, including the manufacturers, traders, government and other Individual/Legal Entity involved in consumer chain.

This law is not specific for the market attended by direct sales companies. Some articles of this law, however, have, as target, the protection of consumer who is attended by direct sales system. For example: change of mind time (article 49), which determines that the consumer has 7 days to give up of a purchasing or service, and the company is obliged to accept the product devolution, or is obliged to return the respective value, duly corrected by the inflation.

Canada
The cooling-off period for direct selling is governed by provincial legislation. In 1996, the provincial governments agreed to harmonize their cooling-off periods. The provinces also harmonized the requirements for the contents of written sales contracts/invoices. All provinces now have a ten (10) day cooling-off period. Information on individual provincial laws is available to DSA members from the DSA office. All provinces provide for cancellation after longer periods if certain other conditions are not met. A notice of rescission or cancellation is sufficient if, however it is expressed, it indicates the intention of the buyer to rescind the contract. The effect of the cancellation is to unwind the sales contract or withdraw an offer to buy as if the contract or offer never existed. It cancels any related sale, or any guarantee, or security of money payable given by the buyer or guarantor under the sales contract.

Chile

The Consumer Protection Law (“CPA”), grants to any consumer the right to unilaterally terminate an agreement within a 10-days term as from the reception of the relevant products or the hiring of the relevant service (and before the rendering of such service), in the following cases:

1. If the relevant products are purchased or the relevant services are hired in meetings called for such purpose by the provider of such products or services, provided that the consumer has to express his or her acceptance within the same day in which the relevant meeting was held.
2. If the corresponding agreement by which a product was purchased or a service was hired has been executed through electronic means, or if a consumer has accepted an offer made by a provider through catalogues, advertisement or any other kind of long distance communication, unless the provider has expressly stated otherwise.

Columbia
Despite the fact that some direct selling companies have a cooling-off period, there is not legislation to that respect.

Czech Republic
“Governed by Civil Code which establishes 14 days as cooling-off period for any retail transactions concluded outside permanent POS.”

Denmark
The cooling-off period is one week from the date when the product is received by the customer, who must then inform the salesperson in writing if the cooling-off period is to operate.
The information concerning the cooling-off period must be given at the time when the customer orders the products. This can either be in a special form or printed on the back of the order form.

European Union
As of 13 June 2013 consumers have a period of 14 days to withdraw from a distance or off-premises contract, without giving any reason, and without incurring any costs other than delivery. (Article 9 (1) Directive 2011/83/EU)

Finland
Under the Consumer Protection Act, the cooling off period runs seven days from the time of receipt of a direct sales or the receipt of the goods or first consignment of them.

France
Previously, the cooling off period for consumers was 7 days starting from the order.

The 2014 law relating to Consumption (included into the consumption code with the articles L. 121-16 and followings as regards Direct Selling) extended the cooling off period to 14 days, starting from :
– the order as regards service contracts, or
– the delivery as regards good contracts and service contracts including delivery of goods.

However, there are specific cases where the right of withdrawal cannot apply (Article L.121-21-8).

Germany
The Law on the Cancellation of Doorstep and similar Transactions came into force on 1 May 1986, its purpose being the protection of consumers in the area of contracts negotiated at home or at the consumer’s place of work, by giving a one-week right of withdrawal. This right also applies to sales made at entertainments organised by the seller or a third party acting on his behalf; approaches made on public transport or highways; to service, manufacturing and estate agency contracts.

The right of cancellation does not apply to small transactions below DM80 or to contracts made in response to a request from a customer.

Cancellation may be done by post, within the prescribed time. Time runs from the moment of delivery to the customer of a clear, properly printed notice of his right of cancellation, including the name of the offeror. The notice may not contain any other statement and must be signed by the customer. If this notice is not given, the right of cancellation will expire only after a period of one month following complete performance of the contract by both parties.

In the event of cancellation, each party must return to the other the product or service received. Cancellation is not excluded by the deterioration, destruction or other impossibility of restitution of the goods. If such condition is the customer’s fault, he must refund to the other party the value thereof or the loss in value.

The law does not apply to commercial or insurance contracts.

There are special provisions for correspondence courses under the Correspondence Course Protection Act which came into force on 1 January 1977.

Guatemala
The Code of Consumer Protection Law ( Decreto 6-2003) defines the consumer’s rights; is a law that aims to promote, disseminate and defend the rights of consumers and users, establish the offenses, penalties and procedures in this area. The provisions of this Act are guardians of consumers and users and provide a minimum of rights and guarantees of non-derogable, social interest and public order.

This law is not specific for the market attended by direct sales companies. Some articles of this law, however, have, as target, the protection of consumer who is attended by direct sales system.

Hong Kong
Cooling Off Period: There is no regulation demand cooling-off period for consumers. Direct Selling Association of Hong Kong demands all member companies of the offer a minimum of 7-day cooling off period from the date of purchase. During this period, customers have absolute right of cancellation of purchase.

Hungary
Consumers may exercise their right of withdrawal within 8 working days from a) the day the product was handed over to the consumer b) the day the contract for providing a service has been concluded.

In the event that the consumer rescinds from the contract within the said cooling off period, the consumer may demand to have the purchase price refunded upon returning the product to the seller or to have the proportionate fraction of the value of the service not yet performed to be refunded.

The consumer, if unable to return a received and undamaged product or if the value of the product has been substantially reduced, or if the consumer has used the services in full, shall not be entitled to withdraw from the contract.

A consumer may not validly waive his right of withdrawal.

India
There is no legislation which makes it obligatory either to include such a term or prohibit inclusion of such a term in any agreement between the manufacturer / trader and the consumer. It is left to the trader and the consumer whether to have such a term in the agreement or not. However, if such a term were included in the agreement, breach of the same would make either party civilly liable.

However, one usually finds that various reputed manufacturers or traders offer to the consumers guarantees / warranties for over a period, sometimes even up to five (5) years or more towards the quality of their goods so that, if during that period any defect crops up in the said goods, the manufacturer / trader repairs the defect or replaces the goods or returns the money if the defect is found to be incurable. In the case of breach of guarantee / warranty, the manufacturer / trader becomes civilly liable for damages.

It is usual for the manufacturer / trader to provide their sales persons with identity cards showing the company they represent, to be produced when demanded by the household or the consumer who is buying from him.

Indonesia
No legislation.

Ireland
In the typical direct selling situation (a face-to-face sale away from retail premises), the consumer has the legal right to cancel the contract by giving the seller (usually by post or email, but it can be by any method including by telephone) a clear statement cancelling the contract. This can be done any time up to 14 days after delivery of the goods. If the contract is for services the deadline is 14 days after the making of the contract. There are limited exceptions, including in the case of personalised or made-to-measure goods. The exceptions do not apply unless the consumer is informed that there is no right to cancel. The same rules apply in the case of distance purchases (e.g. online orders) by consumers. The consumer must be given, at the time of the order being placed, a Notice of the Right to Cancel together with a model cancellation form which he may use to give notice of cancellation. The Notice of the Right to Cancel should be incorporated within the customer order form given to the consumer. The law is in most respects the same throughout the EU, as it derives from the EU Consumer Rights Directive. In the Republic of Ireland the law is stated in the European Union (Consumer Information, Cancellation and Other Rights) Regulations 2013. In the Republic of Ireland, there is an additional exception whereby the regulations do not apply to (and thus there is no right of cancellation in the case of) an “off-premises” (face-to-face) sale for an amount not exceeding 50 euros.

Italy
The cooling-off law helps eliminate high pressure sales negotiated outside commercial premises by allowing the final consumer ten (10) working days to rethink the purchase of consumer goods or services and to cancel without obligation or penalty.

Under the current rule, the seller must furnish the buyer with a receipt or a copy of the purchase order which shows the transaction date and a notice of the customers’ right to cancel the transaction by mean of a registered letter mailed to the seller address within ten (10) working days from the date of signature of the order form.

If the customer does cancel the sale, the seller must unwind the transaction within thirty (30) days; any deposit or down payment must be refunded; any negotiable instrument must be cancelled and returned; and any security interest must be terminated. The customer must return any goods received at his own expenses and in compliance with the timing specified by the contract. The deadline for returning the goods must not be less then ten (10) working days from the date of receiving the goods. The substantial integrity of the goods returned is an essential condition for the assertion of the cooling-off right.

The cooling-off law does not apply:

• to transactions costing less than Euro 26.00
• to the sales of foods and beverages supplied by regular roundsmen
• to real estate transactions
• to insurance contracts
• to financial investment agreements.

Direct Sellers – Cooling-off and Buy Back

Cooling off

The direct seller shall have a period of at least ten (10) working days in which to withdraw from his agreement without penalty and without giving any reason.

The period for exercise of this right shall begin from the day of conclusion of the agreement. The direct seller shall inform the company in writing of his decision to withdraw from the agreement.

Where the right of withdrawal has been exercised by the direct seller, the company shall buy back all products and business aids that the direct seller purchased at the start of his activities. The company shall reimburse free of charge all sums paid by the direct seller. The substantial integrity of the goods returned is an essential condition for the assertion of the cooling-off right.

Buy back

Notwithstanding the direct seller’s right of withdrawal, should a direct seller decide to put an end to his relationship with the company, the company shall buy back all products purchased by the direct seller. The terms of this buy back will be that the direct seller will receive a minimum of 90% of the purchase price, less any earnings or benefits received based upon the purchase of the products being returned. Here again the substantial integrity of the goods returned is an essential condition for the assertion of this right.

Japan
Regarding door-to-door sales, Act on Specified Commercial Transactions lays down a cooling off period of eight days from the date the consumer received the contract.
If the consumer has paid and received the goods, the price you paid to return the item will be returned. Direct seller has to pay the return cost of the goods.
There are three exceptions to the cooling-off rule;

1. With consumable and specified goods such as cosmetics, detergents and condoms if the goods has been used.
2. Cash transactions under 3,000 yen.
3. Private cars.

Cooling-off period is different from the door-to-door sales in MLM. 20 days being given from the day the contract is received or the day the goods are received in case of resale system, whichever the later date.

Lithuania
14 days if the receipt on purchase is issued
3 months if the receipt on purchase was not issued

Point 8 of Regulations;

Malaysia
Section 2 of the Direct Sales Act 1993 defines the cooling-off period as a period of ten (10) working days after the date of the making of a direct sale contract.

Section 23 of the Act requires all door-to-door and mail order sales having such value as may be prescribed to:

-be in writing;
-contain the statement ‘this contract is subject to a cooling-off period of ten days’ immediately above the place provided for signature of the purchaser, printed in upper case in type not smaller than 18 point Times;
-be signed by both vendor and purchaser.

Mexico
Direct sales in Mexico are regulated by the Consumer’s Protection Federal Law (published on February 4, 2004) which provides that such sales must be evidenced in writing (sales receipts) and a copy given to the consumer, who has the right to cancel the contract within five (5) business days. During this period the consumer may withdraw, free from all liability.

Cancellation may be carried out through written notice or personal delivery of the merchandise to the agent; or by registered post, with the acknowledgement of receipt; or by any other legal means. Such cancellation makes the contract void.

Netherlands
The EC Doorstep Selling Directive is implemented in the Colportagewet (Canvassing Act). This law is aimed at protecting consumers in two ways, by Public Law and by Private Law.

Public Law

It is forbidden to misbehave as a canvasser. In case of misbehaviour of the canvasser, fines can be imposed by an independent judge. When in such a case the company cannot prove it has taken measures to prevent misbehaviour, the company can also be fined.

Examples of what will be considered as misbehaviour are:

– not telling the consumer you are a canvasser, trying to sell products / services;
– letting the consumer take obligations that exceed his financial capacities;
– making false or misleading statements about the products;
– dividing a contract of Dfl.75,– or more into contracts of less than Dfl.75,– in order to evade the requirements related to contracts of Dfl.75,– or more (see below).

Private Law

When a contract is Dfl.75,– or more:

– written contract (with a pre-printed cancellation form, with legally determined texts) has to be made up;
– requirements as to legibility, size of the contract, etc;
– cooling off period of seven (7) days;
– cooling-off period starts only when the local Chamber of Commerce has printed a date on the contract.

A contract of Dfl.75,– or more is void when no written contract is made. When no date has been printed on the contract, the consumer has an infinite cooling-off period.

(Code of Conduct of the Dutch DSA has a longer cooling-off period, for all contracts, even below Dfl.75,–)

New Zealand
Consumers in New Zealand have a cooling off period in law of 7 days only in relation to hire purchase transactions under the Door to Door Sales Act 1968. However this will change under the Consumer Law Review to 5 working days. Otherwise there is no statutory obligation for cooling off period.

The DSANZ Code of Practice provides 10 days for all products other than food or perishable items and effectively sets a benchmark for non-members as well. The Consumer must notify the seller within the cooling off period although this does not have to be in writing. If it is not done in writing some other verification is the responsibility of the consumer.

The uplifting and refund is the responsibility of the Direct Seller once notice is given. DSANZ members are obliged to refund within 10 working days under the Code whereas the specified time frame required by the Door to Door Sales Act says the consumer is entitled to a refund within 7 days from the point of notice but does not specify any penalty if this late. The new Consumer Law will not change the effective period but will allow a penalty if not complied with.

Both the DSANZ Code and the Door to Door Sales Act require the Direct Seller to advise the consumer of their rights at point of sale in writing. The same will apply under the new Fair Trading Act amendment.

Norway
The current cooling-off period is 10 days.

Peru
The Independent Business and Employers should ensure that any form contains, be it a legal requirement or not, a clause reflection period allowing the consumer to withdraw from your purchase within a specified period of time and to get a refund if payment was. Companies and entrepreneurs that offer an unconditional right of return must do so in writing. CAPEVEDI agree that the consumer is entitled to restitution, exercisable within a period of 7 calendar days from the date on which the contract for the product produced or service from the day of receipt or initiation of execution, whichever is later.

The consumer has the right to prompt return of material benefits from consumer contract in cases where the provider has engaged in any of the practices outlined in Article 58, whatever the type of contract used.

To this end, the consumer has a period of seven (7) calendar days from the day that saw the contract for the product or service, or from the date of receipt or initiation of execution, whichever occurs thereafter, without prejudice to its right to take appropriate administrative actions under the provisions of this Code or to request cancellation of the contract in appropriate legal channels. (…)

Article 59 .- Right to restitution
(…) The right to restitution is considered valid if the consumer exercised reliably inform the provider about it and proceed to the return of goods received or requested the interruption of the service. Exercised this right, the consumer does not assume any reduction in the amount to be returned if you have made a normal use or enjoyment of the service, unless a manifest is generated damage or loss in value.

Up to the consumer to prove the causal supporting their right to restitution and the exercise of this right as provided in this article.

Philippines
No legislation.

Poland
There is no legislation for a cooling-off period. A Consumer Protection Law is being prepared and will probably contain a cooling-off period.

The Polish DSA accepted the WFDSA World Codes of Conduct for Direct Selling and its members voluntarily offer to their customers a cooling-off period of seven (7) days.

Portugal
14 days. According to the European directive 2011/83/UE, dated 22nd November 2011, full transposition (European Parliament and European Council), See article 10 of Decree-Law 24/2014. The cooling off period is fixed by 12 months article 10 # 2, if there is a violation on the information duties by the seller.

Russia
Article 26.1 “Distance Selling of Commodities” of the Federal Law “On Consumer Rights’ Protection”

• is in force from the beginning of 2005
• gives a definition of Distance Selling as sales that are performed on the basis of the description of a commodity that was provided in catalogues, advertisements, booklets or presented with the use of photos, through communication means (television, postal, radio and other means of communication) or in other ways that do not provide consumers with an opportunity to get familiar with a commodity
• introduces a cooling-off period for Distance Selling equaled 7 days after delivery of the commodity. But if the consumer is not provided with information on cooling-off period rights in writing the cooling-off period duration shall be expanded till 3 months.

Singapore
The DSA of Singapore has voluntarily adopted a seven (7) day cooling-off period since 1992. The following clause is included in the sales contract or order form of its member companies:

In line with the cooling off policy of the Direct Selling Association of Singapore, this contract / order may be cancelled within seven days (excluding Saturdays, Sundays and all public holidays) in writing and receive a full refund of their money (subject to reasonable charges for, among other things, the goods and services supplied related to the order or the contract).

To avoid possible abuse of this clause by the consumer, members of the DSA have been advised against delivering goods to the customer during the effective period of the clause. Any customer requesting delivery of the goods during this period would be advised of forfeiture of the right to cancel the contract of order.

Under the CPFTA, consumers are only entitled to a 5-day cooling-off period, excluding Saturdays, Sundays and Public Holidays.

Slovak Republic
14 days as cooling-off period for any retail transactions concluded outside permanent POS.

Slovenia
The Act on Consumer Protection establishes 14 days as cooling-off period for any retail transactions concluded outside business premises.

South Africa
Under the Consumer Protection Act a consumer may rescind a transaction resulting from any direct marketing without reason or penalty, by notice to the supplier in writing, or another recorded manner and form, within five business days after the later of the date on which the transaction or agreement was concluded or the goods that were the subject of the transaction were delivered to the consumer.

The DSASA’s Code of conduct is aligned with the Consumer Protection Act and as such member companies are required to:

• Exercise responsibility for compliance of this Code over each of their independent contractors or sales persons.
• Be able to impose disciplinary measures on those who violate their policies
• If necessary, remove those who continue to infringe these policies and rules and
• Ensure that effective methods are employed to handle customer complaints

South Korea

	Consumer	Distributor
Multilevel Sales	Within 14 days	Within 3 months
Sponsoring Door-to-Door Sales	Within 14 days		Within 3 months
Door-to-Door sales	Within 14 days

Spain
Royal Decree 1/2007 provides for a right of cancellation on the part of the consumer up to seven (7) days after receipt of the goods. No reason has to be given for this cancellation.

In the coming months, transposition of EU Directive 2011/83 will increase the number of days to fourteen (14).

Sweden
The cooling-off period is fourteen days, however never less than seven working days. The cooling-off period starts when the consumer has received the product or the date of the contract in case of a service. The cooling-off period never starts earlier than the day the consumer received the information and in case of direct selling the cancellation form. Exercising the right of cancellation can be made verbally. The burden of proof rests however with the consumer, who therefore normally exercises the right through registered letter.

The cooling-off rights expire in case no information has been given to the consumer, one year in case of distance selling contracts and three months in case of direct selling contracts from the receipt of the product or from the date of the service contract.

To preserve the cancellation rights, the consumer must keep the product in substantially unchanged condition. If the product is damaged or lost, the consumer loses his cancellation right. When the contract has been cancelled, the consumer must return, at his expense, the product to the seller (distance selling contracts) or keep the product available for the seller to pick up (direct selling contracts). In case of service contracts keep material, if any available for the seller to pick up. The seller must repay whatever the consumer has paid for the product/service, including returning any trade-ins, within thirty days from receipt of the product or cancellation of a service contract. If the seller does not pick up the product or make a repayment in full of any amount paid by the consumer within three months, the consumer may keep the product without further payments. The consumer may however not hide during this three-month period to make it impossible for the seller to pick up the product.

In case of credit terms having been agreed also such credit arrangement will expire in case of cancellation as aforesaid.

Direct selling companies are obliged to use information and cancellation forms provided by the National Board for Consumer Protection.

Taiwan
Article 20 of MLMSA states

Any participant in multi-level marketing may rescind or terminate the participation contract by giving the multi-level enterprise written notice within thirteen days after entering into such contract.

Within a period of thirty days after rescission or termination of the contract takes effect, the multi-level marketing enterprise shall accept the application from the participant for returning of goods, collect or accept goods returned by the participant, and return to the participant all the payment for goods made upon purchase and any other fees paid to the multi-level enterprise.

In returning the payments made by the participant according to the preceding paragraph, the multi-level marketing enterprise may deduct upon the time of returning of the goods the value decreased due to the damage or loss attributable to the participant, and any bonus or remuneration already paid to the participant for purchase of such goods.

If the returned goods as referred to in the preceding paragraph are collected by the enterprise, the enterprise may deduct the shipping costs required for such collection.

Article 21 of MLMSA states

After the lapse of the period as referred to in the first paragraph of the preceding article, the participant at any time may still terminate the contract by writing and withdraw itself from the multi-level marketing plans or organizations, and request to return the goods, provided that when six months lapse since the date that the products are deliverable, the participant may not request to return the goods. Within thirty days from the termination of the contract in accordance with the preceding paragraph, the multi-level marketing enterprise shall buy back all goods possessed by the participant at ninety percent (90%) of the original purchase price. The multi-level marketing enterprise may deducted the bonuses or remuneration paid to the participant for the purchase as well as the amount of the decreased value of the goods.

If the returned goods are collected by the enterprise, the enterprise may deduct the shipping costs required for such collection.

Article 22 of MLMSA states

When the participant exercises the right to rescind or terminate the contract in accordance with the two preceding articles, the multi-level marketing enterprise may not claim damages or levy penalties against the participant for such rescission or termination.

When the sold goods are supplied by third parties, and the participants exercise the right to rescind or terminate, the multi-level marketing enterprise shall handle the returning of goods and repurchase according to the preceding two articles, and shall pay the damages or penalties third party suppliers charge the participants.Article 19 of the CPL states

Consumers of a mail order or door-to-door sale, if unwilling to purchase the goods received by them, may return the goods or notify in writing the business operators to rescind the purchase contract within 7 days upon receipt such goods without stating reasons or paying any expenses or the purchase price.

Any covenants set forth in the mail order purchase or door-to-door sale violating the preceding paragraph shall be null and void.

In case of the termination of the aforesaid contract, if the agreement relating to restoration between the business operators and consumers is less favorable to the consumers than Article 259 of the civil code, such agreement shall be null and void.

Thailand Thai Direct sales and Direct Marketing Act has stated that :-

Section 33 In purchasing goods or service via direct sales or direct marketing, the consumer is entitled to terminate the contract upon expressing its intention in writing to the direct sales operator or the direct marketing operator within seven days from the day it receives the goods or services. In case of direct sales, the consumer may notify the same to the relevant independent distributor or the direct sales representative.

The foregoing provision shall not apply to the category, price or type of goods or services specified in the Royal Decree.

Section 36 Upon the consumer’s exercise of its right to terminate the contract under Section 33, the independent distributor, the direct sales representative, the direct sales operator or the direct marketing operator shall refund to the consumer full amount of the purchase price of the goods or services within fifteen days from the day it receives the notice to terminate the contract.

If the independent distributor, the direct sales representative, the direct sales operator or the direct marketing operator fails to refund the amount within the period prescribed in the foregoing paragraph, the said independent distributor, the direct sales representative, the direct sales operator or the direct marketing operator shall be subject to a fine at the rate as specified by the Commission.

Turkey
Seven (7) calendar days cooling off period after either delivery or invoice date, whichever is the later.

Ukraine
Under the Law of Ukraine on consumer rights protection the cooling-off period is 14 days.

United Kingdom
In the typical direct selling situation (a face-to-face sale away from retail premises), the consumer has the legal right to cancel the contract by giving the seller (usually by post or email, but it can be by any method including by telephone) a clear statement cancelling the contract. This can be done any time up to 14 days after delivery of the goods. If the contract is for services the deadline is 14 days after the making of the contract. There are limited exceptions, including in the case of personalised or made-to-measure goods. The exceptions do not apply unless the consumer is informed that there is no right to cancel. The same rules apply in the case of distance purchases (e.g. online orders) by consumers. The consumer must be given, at the time of the order being placed, a Notice of the Right to Cancel together with a model cancellation form which he may use to give notice of cancellation. The Notice of the Right to Cancel should be incorporated within the customer order form given to the consumer. The law is in most respects the same throughout the EU, as it derives from the EU Consumer Rights Directive. In the UK the law is stated in the Consumer Contracts (Information, Cancellation and Additional Payments) Regulations 2013. In the UK, there is an additional exception whereby there is no right of cancellation in the case of a face-to-face sale for an amount not exceeding £42.

The following are available to members of the DSA:

• The DSA Guidance Sheet on Customer Order forms, setting out how to achieve compliance.
• A DSA Specimen Returns Policy, which covers both the typical direct selling situation and distance sales (e.g. sales made via the company website).

United States
At the US federal level, the Federal Trade Commission (FTC) Cooling-off Rule allows the consumer three (3) business days to cancel the purchase or lease of consumer goods or services costing more than $25 without obligation or penalty. Sales must have been initiated by the seller or its personal representative and occur away from the seller’s place of business.

The seller must furnish the buyer with a receipt or copy of a contract, which shows the transaction date, the customer’s name and address, and a notice of the customer’s right to cancel the transaction within three (3) business days. The seller must also provide the notice of cancellation form (in the exact language provided by the FTC) in duplicate, using a minimum 10-point boldface type. The seller must also inform the customer orally of his and her right to cancel.

If the customer cancels the sale, the seller must cancel the transaction within ten (10) days. Any deposits or down payments must be refunded; any negotiable instruments must be cancelled and returned and any security interests created must be terminated. The customer must enable the seller to recover any goods already delivered within twenty (20) days after the sale has been cancelled. It is the seller’s obligation to retrieve the goods.

Forty-eight states have the three-day cooling off period. Alaska has a five day cooling off period and North Dakota extends the cancelation period to 15 days for those individuals 65 years of age or older.

Uruguay
No legislation.