FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE C

GENERAL

OMMISSION

ost companies want to make you happy so you’ll come back and recommend them 

to your friends. But when you find a company that’s not making the grade, how do 

you resolve the problem?

This brochure explains your rights when it comes to mail and telephone order 

shopping, unordered merchandise, and door-to-door sales. It also tells you how 

to write an effective complaint letter and lists some resources for additional help.

Mail and Telephone Order Sales

Shopping by phone or mail can be a convenient alternative to shopping at a store. But if your 

merchandise arrives late or not at all, you have some rights.

By law, a company should ship your order within the time stated in its ads. If no time is 

promised, the company should ship your order within 30 days after receiving it.

If the company is unable to ship within the promised time, they must give you an “option 

notice.” This notice gives you the choice of agreeing to the delay or canceling your order and 

receiving a prompt refund.

There is one exception to the 30-day rule. If a company doesn’t promise a shipping time, and 

you’re applying for credit to pay for your purchase, the company has 50 days to ship after 

receiving your order.

How to Right a 

Wrong

M
Facts for Consumers 

Fair Credit Billing Act (FCBA)

You’re protected by the FCBA when you use your 

credit card to pay for purchases.

Billing Errors

If you find an error on your credit or charge card 

statement, you can dispute the charge and withhold 

payment on the challenged amount while the 

charge is in dispute. The error might be a charge 

for the wrong amount, for something you did not 

accept, or for an item that was not delivered as 

agreed. Of course, you still must pay any part of 

the bill that isn’t in dispute, including the finance 

charges on the undisputed amount.

If you decide to dispute a charge:

• write to the creditor at the address indicated on 

the monthly statement for “billing inquiries.” 

Include your name, address, credit card 

number, and a description of the billing error. 

• send your letter in a timely fashion. It must 

reach the creditor within 60 days after the first 

bill containing the error was mailed to you. 

• the creditor must acknowledge your complaint 

in writing within 30 days after receiving it, 

unless the problem has been resolved. The 

creditor must resolve the dispute within two 

billing cycles (but not more than 90 days) 

after receiving the letter. 

Unsatisfactory Goods or Services

You also may dispute charges for unsatisfactory 

goods or services. To take advantage of this 

protection, you must:

• have made the purchase in your home state 

or within 100 miles of your current billing 

address. The charge must be for more than 

$50; 

• make a good faith effort first to resolve the 

dispute with the seller. However, you are not 

required to use any special procedure to do so. 

Note that the dollar and distance limitations don’t 

apply if the seller is the card issuer or if a special 

business relationship exists between the seller and 

the card issuer.

Unordered Merchandise

If you receive merchandise you didn’t order, 

federal law says you can consider it a gift. You 

can’t be forced to pay for the item or return it.

If you decide to keep the merchandise, you 

may want to send the seller a letter stating your 

intention, even though you’re not legally obligated 

to do so. Your letter may discourage the seller from 

sending you repeated bills, or it may clear up an 

error. It’s a good idea to send the letter by certified 

mail and keep the return receipt and a copy of the 

letter. These records will help you establish later, if 

necessary, that you didn’t order the merchandise.

Two types of merchandise may be sent legally 

without your consent: free samples that are clearly 

marked as such; and merchandise mailed by 

charities asking for contributions. In either case, 

you may keep the shipments.

Door-to-Door Sales

Shopping at home can be convenient and 

enjoyable. But there may be times when you 

change your mind about an in-home purchase.

The FTC’s Cooling-Off Rule gives you three days 

to cancel purchases of $25 or more made at your 

home, workplace or dormitory, or at facilities 

rented by the seller on a temporary short-term 

basis, such as hotel or motel rooms, convention 

centers, fairgrounds, and restaurants.

Some Exceptions

Some types of sales can’t be canceled even if they 

occur in locations normally covered by the Rule. 

The Rule does not cover sales that:

• are under $25; 

• are for goods or services not primarily 

intended for personal, family, or household 

use. The Rule applies to courses of instruction 

or training; 

• are made entirely by mail or telephone; 

• are the result of prior negotiations at the 

seller’s permanent location where the goods 

are sold regularly; 

• are needed to meet an emergency. Suppose 

insects suddenly invade your home, and you 

waive your right to cancel the contract; 

• are made as part of your request for the 

seller to do repairs or maintenance on your 

personal property (purchases made beyond the 

maintenance or repair request are covered). 
Facts for Consumers

Also exempt from the Rule are sales that involve:

• real estate, insurance, or securities; 

• automobiles, vans, trucks, or other motor 

vehicles sold at temporary locations, provided 

the seller has at least one permanent place of 

business; 

• arts and crafts sold at fairs or locations such as 

shopping malls, civic centers, and schools. 

Under the Rule, the salesperson must tell you 

about your cancellation rights at the time of sale. 

The salesperson also must give you two copies of 

a cancellation form (one to keep and one to send 

back) and a copy of your contract or receipt. The 

contract or receipt should be dated, show the name 

and address of the seller, and explain your right to 

cancel. The contract or receipt must be in the same 

language that’s used in the sales presentation.

How to Cancel a Door-to-Door Sale

To cancel a sale, sign and date one copy of the 

cancellation form. You don’t have to give a reason 

for canceling the purchase. Mail it to the address 

given for cancellations, making sure the envelope 

is post-marked before midnight of the third 

business day after the contract date. (Saturday is 

considered a business day; Sundays and federal 

holidays are not.) Because proof of the mailing 

date and receipt are important, consider sending 

the cancellation form by certified mail so you can 

get a return receipt. Keep the other copy of the 

cancellation form for your records. If the seller did 

not provide cancellation forms, write your own 

cancellation letter.

If You Cancel

If you cancel your purchase, the seller has 10 days 

to:

• cancel and return any promissory notes or 

other negotiable instruments you signed; 

• refund all your money and tell you whether 

any product left with you will be picked up; 

and 

• return any trade-in. 

Within 20 days, the seller either must pick up the 

items left with you, or reimburse you for mailing 

expenses, if you agreed to send back the items. 

If you received any goods from the seller, you 

must make them available to the seller in as good 

condition as when you received them. If you don’t 

make the items available—or if you agree to return 

the items but don’t—you remain obligated under 

the contract.

Problems

Try to resolve your dispute with the seller first. 

Make sure you act quickly. Some companies may 

not accept responsibility if you fail to complain 

within a certain period of time. 

Send a letter of complaint. A letter is important 

because it puts your complaint on record and lets 

the company know you are serious about pursuing 

the dispute. An effective complaint letter may look 

something like the sample on the next page. Be 

sure you keep a copy for your records.

If you can’t get satisfaction, consider contacting 

the following organizations for further information 

and assistance.

• State and local consumer protection 

offices. 

• Your local Better Business Bureau (BBB). 

• Action line and consumer reporters. Check 

with your local newspaper, TV, and radio 

stations for a contact. 

• Postal Inspectors. Call your local U.S. Post 

Office and ask for the Inspector-in-Charge. 

• The Federal Trade Commission. To file a 

complaint, visit ftc.gov or call toll-free, 

1-877-FTC-HELP (382-4357); TTY: 1-

866-653-4261. Although the FTC does 

not intervene in individual disputes, the 

information you provide may indicate a 

pattern of possible law violations requiring 

action by the Commission.

• Mail/telephone orders only. Write: Direct 

Marketing Association (DMA), 1111 19th 

Street, NW, Washington, DC 20036.

• Door-to-Door sales only. The Direct Selling 

Association (DSA) can help you with your 

complaint if the door-to-door seller is a 

member. Write: Direct Selling Association, 

1275 Pennsylvania Ave, NW, Washington, DC 

20004.
Facts for Consumers

Dispute Resolution Programs

You also may want to consider dispute resolution 

programs. A popular way to settle disagreements, 

a dispute resolution program can be quicker, 

less expensive, more private, and less stressful 

than going to court. Many businesses, private 

organizations, and public agencies offer these 

programs. Two resolution techniques are mediation 

and arbitration. 

Through mediation, you and the other party try 

to resolve the dispute with the help of a neutral 

third party — a mediator. In the course of informal 

meetings, the mediator tries to help resolve your 

differences. The mediator doesn’t make a decision; 

it’s up to you and the other party to reach an 

agreement. The mediator is there to help you find a 

solution.

In arbitration, you present your case before an 

arbitrator, who makes a decision. Arbitration is less 

formal than court, though you and the other party 

may appear at hearings, present evidence, or call 

and question each other’s witnesses. The decision 

may be binding and legally enforceable in court.

Contact the following organizations for dispute 

resolution options in your area: local and state 

consumer protection offices, small claims courts, 

BBBs, and bar associations.

For More Information

If you’re not sure what federal agency has 

jurisdiction over your inquiry or complaint, contact 

the Federal Citizen Information Center’s (FCIC) 

National Contact Center at 1-800-FED-INFO (333-

4636) Monday through Friday 8:00 a.m. to 8:00 

p.m. eastern time.

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business practices 

in the marketplace and to provide information to 

help consumers spot, stop, and avoid them. To file 

a complaint or to get free information on consumer 

issues, visit ftc.gov or call toll-free, 1-877-FTCHELP (382-4357); TTY: 1-866-653-4261. The 

FTC enters Internet, telemarketing, identity theft, 

and other fraud-related complaints into Consumer 

Sentinel, a secure, online database available to 

hundreds of civil and criminal law enforcement 

agencies in the U.S. and abroad.

(Your address)

(Your City, State, Zip Code)

(Date)

(Name of Contact Person)

(Title)

(Company Name)

(Street Address)

(City, State, Zip Code)

Dear (Contact Person):

 On (date), I purchased (or had repaired) a (name 

of the product with the serial or model number or 

service performed). I made this purchase at (location, 

date, and other important details of the transaction). 

 Unfortunately, your product (or service) has 

not performed well (or the service was inadequate) 

because (state the problem). 

 Therefore, to resolve the problem, I would 

appreciate your (state the specific action you want). 

Enclosed are copies (copies, NOT originals) of my 

records (receipts, guarantees, warranties, cancelled 

checks, contracts, model and serial numbers, and any 

other documents).

 I look forward to your reply and a resolution to 

my problem, and will wait (set a time limit) before 

seeking third-party assistance. Please contact me 

at the above address or by phone (home or office 

numbers with area codes).

Sincerely,

(Your name)

(Your account number)

SAMPLE COMPLAINT LETTER

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

Federal Trade Commission

Bureau of Consumer Protection

September 2003

Office of Consumer and Business Education