Many states have laws (statutes) that allow a consumer to cancel a contract or sale made at the consumer’s home, at the home of another person (at an in-home sales party), or at another place that is not the seller’s permanent place of business. A consumer’s right to cancel such a home-solicitation contract is also known as a right to rescind the contract, or a cooling-off rule, and is based on the belief that a consumer is more vulnerable to high pressure sales tactics in such settings, as it is more difficult for the consumer to walk away from the salesperson.

Such buyer’s remorse laws governing a consumer’s right to cancel a sales contract vary from state to state, but the seller generally must give a copy of the contract to the consumer at the time the contract is signed, and it must include a written statement of the consumer’s right to cancel and the proper means of giving the seller notice of the cancellation of the contract.

Under some state laws a consumer does not have the right to cancel such a contract if the consumer requests the seller provide the goods or services without delay in an emergency situation—to protect the health, safety, or welfare of persons, or to prevent damage to the consumer’s property.

The Federal Trade Commission (FTC) also has a cooling-off rule that gives consumers the right to cancel a sale within three days if the sale was made at someone’s home or workplace, or at a seller’s temporary location, such as a hotel room, convention center, fairground, or restaurant. Under the FTC’s Cooling-Off Rule, a seller must inform a consumer of the consumer’s right to cancel at the time of sale, and must give the consumer two copies of a cancellation form and a copy of the contract or receipt. The consumer’s right to cancel for a full refund extends until midnight of the third business day after the sale. The consumer does not have to give a reason for canceling the purchase. There are exceptions to the FTC’s Cooling-Off Rule.

In New York, consumers are protected by both state statutes and the Federal Trade Commission's (FTC) Cooling-Off Rule when it comes to home solicitation sales. The state laws allow consumers to cancel certain types of contracts or sales made at a location that is not the seller's permanent place of business, such as the consumer's home or at in-home sales parties. These regulations are designed to protect consumers from high-pressure sales tactics by providing them with a right to rescind the contract. In New York, the seller is required to provide the consumer with a copy of the contract at the time of signing, which must include a clear statement of the consumer's right to cancel and instructions on how to notify the seller of the cancellation. However, this right to cancel may not apply in emergency situations where the consumer has requested immediate goods or services to protect health, safety, or property. Under the FTC's Cooling-Off Rule, consumers have the right to cancel a sale within three days if the sale occurs at a non-permanent business location. The seller must inform the consumer of this right and provide two copies of a cancellation form and a copy of the contract or receipt. The right to cancel and receive a full refund lasts until midnight of the third business day after the sale, and the consumer does not need to provide a reason for the cancellation. There are certain exceptions to this rule, such as sales that are under a certain amount, sales of real estate, insurance, or securities, and sales of goods or services not primarily intended for personal, family, or household purposes.