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Home security is one of the last consumer products still sold on doorsteps, and the pitch is built for the moment: a neighbour was burgled, there is a promotion ending today, the installer is in the area this afternoon. The equipment may be perfectly good. The agreement behind it is where the money is.
Key figures
- $25 FTC Cooling-Off Rule minimum for at-home sales
- $130 FTC minimum for qualifying temporary-location sales
- three business days Cancellation window for qualifying FTC Cooling-Off sales
What federal law gives you at the door
The Federal Trade Commission’s Cooling-Off Rule gives you three business days to cancel certain sales made at your home, your workplace or a seller’s temporary location. Saturday counts as a business day; Sundays and federal holidays do not, and you have until midnight of the third business day.
The details that matter:
- It applies to sales of $25 or more at your home, and $130 or more at a temporary location such as a hotel or a convention stand.
- The seller must give you two copies of a cancellation form and a dated contract or receipt with the seller’s name and address and your cancellation rights, in the language used in the sales presentation.
- It does not cover sales made entirely online, by mail or by phone, nor insurance, real estate or securities.
- To cancel, sign and send the form before the deadline, by certified mail if you can, and keep copies.
If a salesperson at your door cannot produce a cancellation form, that is not a paperwork quirk. It is a rule violation, and a good reason to end the conversation.
The six clauses to read first
Skip the feature list and go to the terms.
- The term. How many months, and when does it start: at signature, or at activation?
- Auto-renewal. Does it roll over automatically, for how long, and what notice stops it?
- Cancellation. How much notice, in what form, and is there an early termination charge? How is that charge calculated?
- Equipment ownership. Do you own the hardware or is it leased? Leased equipment has to go back or be paid off.
- Price changes. Can the monthly fee rise during the term, and by how much?
- Moving. What happens if you sell the house or your lease ends? Some agreements transfer, some must be bought out, some require the new occupier to take over.
Ask for the answers in the contract, not in conversation. A promise that is not in the document is not part of the deal.
Ask who the counterparty actually is. In this industry the company that knocks, the company that installs and the company that monitors are often three different businesses, and the agreement may be sold on to a fourth. The name on the van is not necessarily the name you will be paying in year two.
Questions that end a bad pitch quickly
- “Can I have the full agreement to read, and call you tomorrow?” A no here answers everything else.
- “Is this equipment mine, or leased?”
- “What is the total of all payments over the full term?”
- “What does cancelling in month twelve cost?”
- “Do you require an alarm permit in this city, and who applies for it?”
- “Does this work with any other monitoring company if I leave?”
If you have already signed
- Check the date. If you are inside the three business days and it was a sale at your home, use the Cooling-Off Rule: sign the cancellation form and send it, keeping proof of posting.
- Read the cancellation clause for the notice period and the method it requires. Some contracts demand written notice within a specific window before renewal.
- Put everything in writing, even when a phone call is quicker. Note the date, the time and who you spoke to.
- If the equipment is leased, arrange the return and get a receipt. Unreturned leased equipment is the most common surprise charge.
- Complain to your state attorney general and to the FTC if the seller ignores a valid cancellation. Reporting matters.
The larger point
Security is a slow decision. The risk it addresses has fallen substantially over two decades, and it will still be there next week. Anything sold with urgency at your front door is being sold on the emotion of the moment, and emotion is not a good basis for a five-year payment commitment.
Related reading: What Your Alarm Does When the Power Goes Out and An Alarm Monitoring Switch Needs a Complete Transfer.
Questions people ask
Can I cancel a home security contract signed at my door?
The FTC's Cooling-Off Rule gives three business days to cancel most sales of $25 or more made at your home, and the seller must have given you two copies of a cancellation form plus a dated contract stating your rights. After that window, the contract's own cancellation clause governs.
Does the Cooling-Off Rule apply to online or phone sales?
No. The rule covers sales made at your home, workplace, dormitory or a seller's temporary location. Sales made entirely online, by mail or by telephone are not covered, nor are insurance, real estate and securities.
What is an early termination fee on an alarm contract?
A charge for leaving before the term ends, often calculated as a large share of the remaining monthly payments. Ask for the formula in writing before signing, and check whether the term restarts if you add equipment.
What happens to my alarm contract if I move?
It depends entirely on the agreement: some transfer to a new address, some require the buyer of the house to assume them, and some must simply be paid out. Ask before signing, especially if you rent or expect to move within the term.
Where these figures come from
- Buyer's Remorse: The FTC's Cooling-Off Rule May Help Federal Trade Commission · consumer.ftc.gov
- Criminal Victimization, 2024 Bureau of Justice Statistics · bjs.ojp.gov
Figures last checked September 2026.
