The Home Solicitation Sales Act (“HSSA”), which can be found at R.C. 1345.21 et seq., is a statute designed to protect consumers from high-pressure sales tactics that may be used during in-home solicitations. The HSSA can apply to the sale of consumer goods or services, but for purposes of this blog, we will be examining how the HSSA impacts contractors and homeowners in the context of home remodeling services.
What Qualifies as a Home Solicitation Sale?
While you may typically think of “home solicitation sales” as a door-to-door salesman, these in-home solicitations include solicitations in response to a request by a homeowner, such as requesting a contractor to come provide an estimate for goods or services. Should a homeowner and contractor agree to a contract in that instance, very specific language is required.
Key Contract Requirements Under the HSSA
Every sale that falls under the HSSA must be documented in writing, include basic identifying information, clearly set forth the project terms and scope of work, and ensure that the contractor does not engage in any misleading or deceptive practices within the transaction. However, what makes the HSSA a potential landmine for contractors and a goldmine for homeowners is that the agreement must also include a specific statutory notice advising the homeowner of their right to cancel the contract, without penalty, within three business days. The purpose is to allow a homeowner a cooling-off period in the event they change their mind. As part of that, the contract is also required to have a “Notice of Cancellation” form attached to it that a homeowner may fill out and return to a contractor if they do end up changing their mind.
While the HSSA allows a three-day cool-down period, that three-day period to cancel the contract does not begin to run until the contractor has provided the homeowner with the required “Notice of Cancellation” form. Failure to provide this document means that the homeowner can cancel the agreement at any time. Yes, this means that if a contractor does not provide the required form, a homeowner can cancel the contract after work has been done, receive a full refund, and keep whatever goods or services that were finished.
The Overlapping Reach of the Home Solicitation Sales Act & Ohio Consumer Sales Practices Act
Furthermore, even if a contractor provides the “Notice of Cancellation” form, any deceptive, misleading, or unfair conduct in connection with the transaction can still expose them to liability under the Ohio Consumer Sales Practices Act (CSPA). A violation of the CSPA can carry serious consequences, including the potential for the homeowner to recover attorney's fees, triple their damages, and other costs, making compliance with both the HSSA and CSPA critically important for contractors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
