Important information any home-based business owner needs to read! If you operate a business out of your home, do you know if you're in compliance with the Ohio Home Solicitation Sales Act?

1. Is your Small Business in Compliance with
the Ohio Home Solicitation Sales Act?
By Caroline Z. Worley
Most states have laws that protect consumers of household goods/services from
being taken advantage of during a home solicitation sale. In Ohio, when conducting
sales that include meeting a prospective purchaser of services or goods at their home
and in other defined circumstances, the Home Solicitation Sales Act must be complied
with. At the time a sales contract is explained and presented to customer, it must be
accompanied by a 3 day notice of the right to rescind the contract. If the Act is not
complied with, the customer may rescind the transaction (even after services are
completed or goods received) and is relieved of any obligation of payment. Other
requirements under this Ohio law require a business to:
Give customer a signed copy of the sales contract with 2 copies of a Notice of
Cancellation attached; Complete both copies of the Notice of Cancellation and give to
customer. Make your own copies of both the executed contract and the Notices of
Cancellation; Inform each customer orally at the time the sales agreement is
presented/signed, of the 3 day right to cancel. The oral statement must be similar to
the attached written Notice of Cancellation. If customer exercises right of cancellation
within the 3 day period, the within 10 days, Vendor must: refund all payments made;
and notify customer whether Vendor intends to repossess any shipped or delivered
goods; Retain all Notices of Cancellation in records and envelope in which it was
delivered. If there is no date on the Notice of Cancellation, then Vendor must record
date of delivery on the Notice of Cancellation.
Vendor must not commence services during 3 day period in which the customer
may cancel. Noncompliance with the above sections constitutes a deceptive act or
practice in connection with a consumer transaction. If you are not sure if your
business is subject to the requirements of the Act, check the Ohio Attorney General’s
website regarding consumer transactions:
http://www.ohioattorneygeneral.gov/ConsumerLaws#Home_Solitication_Sales_Act
Caroline Z. Worley is a small business attorney who represents owners, investors, and entrepreneurs in
all aspects of commercial, corporate, and business law, contracts and negotiations, business litigation,
and real estate. She owns Worley Law, LLC, located in Columbus, Ohio.