Florida’s 3-Day Right to Cancel a Contract

– Florida Administrative Code 2-18.002 requires sellers of future consumer services to provide buyers with a contract that includes a statement about the buyer’s right to cancel the contract within 3 business days.
– This rule was enacted in 1996 by the Department of Legal Affairs, an agency, and is not a statute mandated by the Florida legislature.
– Agencies must have rule making authority and can only adopt rules that implement or interpret specific powers and duties granted by the enabling statute.
– If an agency exceeds its authority, the rule would be unenforceable as an invalid exercise of delegated legislative authority. 1. Appellate decisions do not provide guidance on the enforceability of 2-18.002.
2. 2-18.002 may be an invalid exercise of delegated legislative authority and may not be enforceable.
3. Fla. Stat. § 120.52(8) limits the extent to which statutory language can be interpreted beyond the specific powers and duties conferred by the enabling statute.
4. Fla. Stat. § 501.205 grants the Department of Legal Affairs the authority to adopt rules for enforcing consumer protection laws, but it does not explicitly require a 3-day right of rescission in future consumer service contracts.
5. Case law suggests that broad statutory authority does not necessarily enable agencies to enact specific rules beyond the scope of the law.
6. The Florida Deceptive and Unfair Trade Practices Act prohibits acts in trade or commerce that are unfair, unconscionable, and deceptive.
7. The definition of an unfair practice is given significant weight by the federal counterpart of the state statute and is described as offending established public policy and being substantially injurious to consumers. – The Attorney General has broad authority to enforce the 3-day right of rescission in certain industries.
– It is unclear which industries are subject to the 3-day right of rescission, and the rule may be enforced on a case-by-case basis.
– Industries selling future consumer services may seek a rule challenge to determine if they are affected.
– Until the rule is challenged and subject to appellate review, it is unknown if it is enforceable, and which industries are affected.
– The Attorney General has enforced the 3-day right of rescission in portions of the travel industry.

https://www.jimersonfirm.com/blog/2017/06/floridas-seldom-used-3-day-right-rescission/