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Sponsors say HB405 would exempt common service contracts from home solicitation law to reduce compliance burdens
Summary
Representatives sponsoring House Bill 405 said the bill would add consumer goods service contracts (extended warranties, repair plans) to statutory exemptions from Ohio's home solicitation sales law while preserving fraud and warranty protections.
Columbus — Sponsors presented House Bill 405 to the House Insurance Committee, arguing the bill would clarify that consumer goods service contracts such as extended warranties and repair plans for electronics and appliances should not be treated as sales under Ohio’s home solicitation statute.
Representative Lorenz and Representative Daniels said the statute originally addressed high‑pressure door‑to‑door sales and includes a three‑business‑day cancellation right and written contract requirements; certain regulated products like insurance and securities already are exempt. HB405 would add common service contracts to the exemption list so that in‑home offers for technician‑installed services — for example, a two‑year replacement plan for a smart doorbell — would not automatically trigger the three‑day delay and other requirements while preserving remedies under consumer protection and contract law for fraud and misrepresentation.
Proponents characterized HB405 as a narrowly tailored, bipartisan update to reflect modern consumer behavior and to reduce unnecessary compliance burdens for routine service contracts; the committee concluded the first hearing with no vote taken.
