Sunday, 11 September 2011

When does a 'Cooling Off' Period apply?

Q: I approached an old customer and got them to agree to a $1300 job. Does the 10 business day cooling off period still apply?

A: Generally under Australian Consumer Law, a cooling off period for unsolicited agreements is 10 business days.

Due to recent changes, as of 1 January 2012 a business will be able to immediately supply goods to a consumer during the cooling off period under an unsolicited consumer agreement if the agreement is worth $500 or less. But businesses cannot accept payment for such a good or supply services during the cooling off period under an unsolicited consumer agreement worth more than $100.


During a cooling off period, no goods or services should be supplied and no payment accepted.

Under certain conditions, customers can still terminate agreements three or even six months after, effectively extending the 'cooling off' period.

Further links:
Australian Consumer and Competition Commission

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