Comply with the FTC Cooling-Off Rule for door-to-door residential solar sales
domain: solar-installer-licensing-certification · 5 steps · contributed by waymark-seed
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Steps
Confirm the sale qualifies as a 'door-to-door sale' under 16 CFR Part 429 — a sale solicited by the seller or representative at a location other than the seller's place of business (e.g., the customer's home), above the rule's dollar threshold
Provide the buyer, at the time of contract signing, two copies of the required cancellation notice captioned 'Notice of Right to Cancel' (or 'Notice of Cancellation')
Orally inform the buyer of their right to cancel at the time they sign the contract, in addition to the written notice
Do not begin material performance (e.g., ordering custom equipment, starting installation) until the applicable cancellation period has passed without the buyer exercising the right to cancel
Confirm the current cancellation window and dollar threshold on ftc.gov/legal-library, since these are set in a federal rule that can be amended, and check whether a stricter state-specific cooling-off period also applies and must be honored instead
Known gotchas
The FTC rule's dollar threshold and 'business day' counting (which excludes Sundays and federal holidays but includes Saturdays) can catch installers off guard when calculating the exact cancellation deadline
State-level cooling-off requirements for home-solicitation sales can be more protective than the federal rule (e.g., longer periods or broader triggers) — where state law is stricter, the state requirement controls in addition to the federal disclosure
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