How The Ohio Consumer Sales Protection Act Safeguards Consumers Against Unfair Contract Terms

Contracts are commonplace when entering into a business relationship with a company that provides a service. Even when you use software, you are entering into a licensing agreement with the company providing the app. You also enter into a contract when you sign up for a gym membership or renovate your home. Contracts are an integral part of daily life. Consumers need to be aware of their rights, especially when it comes to unfair contract terms and their right to cancel agreements. An Ohio law called the Ohio Consumer Sales Practices Act (CSPA) protects consumers from shady business dealings and provides protection against unfavorable terms, offering opportunities to reconsider commitments.

Understanding unfair contract terms 

As a consumer, you’ll want to be on the lookout for unfair contract terms that create a significant imbalance between the business and you. Such terms can be hidden in the fine print of a standard contract, potentially putting an exploitative burden on the consumer. Examples include:

• Excessive cancellation fees
• Clauses that limit a business’s liability
• Terms that allow a business to change the terms of the contract

The CSPA protects consumers from this form of exploitation, especially those who may be most vulnerable to deceptive or underhanded conduct, like seniors or the disabled. The CSPA prohibits practices that limit a consumer’s capacity to make informed decisions. It requires businesses to clearly disclose important terms, prices, and fees.

“Cooling off” periods for cancelling a contract 

Ohio law features a “cooling-off” period that allows consumers a specific timetable to cancel certain contracts without being penalized. This can address situations in which purchases might be made under pressure.

Contracts covered by cancellation rights include:

• Door-to-door sales – You have three business days to cancel.

• Credit and debt counseling services – You have three business days to cancel.

• Prepaid entertainment contracts – You have three business days to cancel services like dance lessons or health spa subscriptions.

• Home equity loans or mortgage refinancing – You have three days to cancel under federal law.

• Business opportunity plans – You have five days to cancel.

• Telemarketing sales – You have seven days to cancel after receiving goods or agreeing to a service, or after signing a written agreement.

Considerations for consumers 

Generally speaking, cancellations must be in writing by the end of the cooling-off period. Businesses are required to refund payments (sometimes with a small fee deduction) if a consumer cancels within the allowed timeframe. Further, businesses are required to inform customers of their right to cancel the contract. They must also provide a cancellation form. If the business fails to do this, the cancellation period could be extended.

Understanding your contract terms and cancellation rights helps you make informed decisions and avoid unfair business practices. Those who are aware of these protections can navigate the marketplace with more confidence.

Talk to a Dayton, OH, Consumer Claims Lawyer Today 

Kohl & Cook Law Firm, LLC, represents the interests of consumers fighting unfair and illegal business practices. Call our Dayton consumer claims lawyers today to schedule an appointment, and we can begin discussing your next steps right away.