The Indiana Home Solicitation Sales Act: A Guide for Homeowners
Everything you need to know about the 3-day rule, seller requirements, and the cancellation process
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In Indiana, consumers who feel pressured into a purchase by a door-to-door salesperson are protected by a specific "cooling-off" period. This legal safety net allows you to cancel certain contracts and receive a full refund, provided you act within a strictly defined window of time.
The Three-Day Rule
Under the Indiana Home Solicitation Sales Act (Indiana Code § 24-5-10) and the Federal Trade Commission's (FTC) Cooling-Off Rule, consumers generally have three business days to cancel a sale made at their residence or at a location that is not the seller's permanent place of business.
This right applies if:
The purchase price is $25 or more.
The transaction takes place in your home, workplace, dormitory, or a temporary location like a hotel room or fairground.
The goods or services are intended primarily for personal, family, or household use.
The "three-day" window is calculated carefully: you have until midnight of the third business day after the date of the transaction. In this context, Saturdays are often considered business days, but Sundays and federal holidays are not.
Requirements for Sellers
For the cooling-off period to be valid, Indiana law requires the seller to be transparent about your rights at the time of the sale. Specifically, the salesperson must:
Provide Oral Notice: Tell you about your right to cancel at the moment of the transaction.
Provide Written Notice: Give you two copies of a cancellation form and a copy of the contract or receipt.
Language Consistency: If the sales pitch was conducted in a language other than English, the written notice and contract must also be in that language.
If a seller fails to provide these documents or misleads you about your right to cancel, the three-day clock may not even start ticking, potentially extending your right to cancel until the proper paperwork is provided.
How to Exercise Your Right
To cancel the sale, you do not need to provide a reason or "proof" of a defect. However, you must notify the seller in writing. Simply calling the company or telling the salesperson is generally not sufficient under Indiana law.
The most secure method is to sign and date one of the cancellation forms provided by the seller and send it via certified mail with a return receipt requested. This provides you with a postmarked record proving you sent the notice before the midnight deadline.
After Cancellation
Once you have sent the notice, the seller has 10 business days to refund your money, return any traded-in property, and cancel any negotiable instruments (like a promissory note) you signed. You must also make any goods delivered to you available for the seller to pick up in good condition. If the seller does not pick up the items within 20 days of your cancellation, you may be able to keep them without further obligation.
Information published to or by The Industry Leader will never constitute legal, financial or business advice of any kind, nor should it ever be misconstrued or relied on as such. For individualized support for yourself or your business, we strongly encourage you to seek appropriate counsel.
