Business owners in Illinois should understand which transactions consumers have the right to cancel within three days.

What Business Owners Need to Know

Starting a business in Illinois requires owners to navigate their way through a series of complex paperwork. Many people are aware of the three-day right to cancel laws, but not everyone understands that it does not apply to all transactions. In fact, it only applies to the following:

Door-to-Door Transactions

In Illinois, the Consumer Fraud and Deceptive Business Practices Act has a specific provision which allows residents a three-day right to cancel sale that happens in the home. This rule applies for purchases that are $25 or more, when the seller solicits you at your home to buy, lease or rent any merchandise.

Those who have been solicited in their home must inform the seller orally and in writing of their intention to cancel, and provide written notice of cancelation within three business days. What is considered a business day will depend on the business owner’s hours of operation.

The seller is required to refund any deposit made on the merchandise within ten days of receiving a cancelation notice and no other charges can be issued. The merchandise must be made available to the seller, who must pick it up within 20 days after it is made available. The seller must pay the costs to pick up the merchandise, which can be kept by the buyer, at no charge, if it is not picked up within the required 20 day period.

Campground Memberships

Those that purchase a campground membership have three business days after the execution of the contract to cancel it. This cancelation notice must be writing and delivered to the campground owner. The owner must then refund an deposit made within 10 days.

Fitness Center Contracts

Fitness Center contracts may also be canceled by consumers within three days. This three day period does include any day that the center is open, which may include Sundays and holidays.

Consumers are given seven days to cancel a contract for a center that has not yet opened. In some cases, consumers may cancel a contract within 12 months if the facility is not available for use.

Any business owner subject to these law should consult with a commercial attorney for additional guidance.