Consumer Law

Cooling-Off Period

Also known as: cooling off period, termination period

In plain English

A short window after signing certain agreements when you can cancel without penalty.

What it means

A cooling-off period lets a consumer cancel certain agreements within a set time. Under the Australian Consumer Law, unsolicited consumer agreements (such as door-to-door or telemarketing sales) carry a 10 business day cooling-off period during which the consumer can terminate without cost. Other cooling-off rights, for example in real estate or some state-based contracts, are set by separate legislation. The right exists by law, so businesses must honour it.

How it's used

After a salesperson signed her up at the door, she used the 10 business day cooling-off period to cancel.

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