What is "cooling-off period"

n. A length of time in which the two sides to a purchase agreement, or contract can think things over and cancel with no penalty. This period is often stipulated by national law. In the UK it is currently (2008) 14 days. In many countries it is 10 days.

Cooling-off period may refer to:

• Cooling-off period (consumer rights), a period of time during which the purchaser may cancel a purchase
• Standstill period, the time to allow unsuccessful bidders to challenge the decision before a contract is signed
• Waiting period, the time which a company making an IPO must be silent about it, so as not to inflate the value of the stock artificially
• Period of time after the termination of a worker's employment in which he or she is prohibited from establishing or obtaining employment with certain entities (i.e. executing the terms of a non-compete clause or the legally mandated waiting period before a former government regulator may begin work within the industry he or she once regulated)
• With respect to anger management, a period of time where two or more parties in disagreement do not communicate with each other with the understanding that it takes time for emotional connections to diminish
• In the nuclear power industry, the length of time that spent nuclear fuel must be stored in water before enough heat is dissipated so that the waste product can be safely reprocessed and/or transported to a more permanent storage facility

In consumer rights legislation and practice, a cooling-off period is a period of time following a purchase when the purchaser may choose to cancel a purchase, and return goods which have been supplied, for any reason, and obtain a full refund.

Many retailers will voluntarily allow a purchaser a cooling-off period, which encourages reduced-risk impulse purchases.

In addition, legislation exists in various parts of the world enforcing this right, to varying degrees. For example, in the European Union, the Consumer Rights Directive of 2011 obliges member states to give purchasers the right to return goods or cancel services purchased from a business away from a normal commercial premises, such as online, mail order, or door-to-door, with limited exceptions, within two weeks or one year if the seller did not clearly inform the purchaser of their rights from the receipt of the goods, for a full refund. The Consumer Rights Directive is implemented in the United Kingdom by the Consumer Contracts (information, Cancellation and Additional Charges) Regulations 2013.