Pennsylvania Supreme Court Renders Decision Regarding Home Improvement Contracts
In Commonwealth v. Gillece Services, L.P., the Pennsylvania Supreme Court considered whether, when a contract falls within the ambit of both the Unfair Trade Practices and Consumer Protection Law (the “UTPCPL”) and the Home Improvement Consumer Protection Act (“HICPA”), a consumer is required to cancel such contract in writing. See Commonwealth v. Gillece Services, L.P., 2026 Pa. LEXIS 780 (Pa. 2026).
The UTPCPL regulates contracts for goods and services and prohibits unfair and deceptive commercial practices. The UTPCPL gives consumers the right to rescind certain contracts by notifying the seller, in writing, of such rescission within three full business days following the date of the contract. HICPA, on the other hand, regulates the narrower category of home improvement contracts. HICPA provides that consumers are permitted to rescind a home improvement contract without penalty within three business days of signing the contract. However, HICPA is silent as to whether the rescission must be made in writing. Therefore, most home improvement contractors which provide goods and services under both the UTPCPL and HICPA require consumers to rescind home improvement contracts in writing within three business days after the date of the contract.
In Commonwealth v. Gillece Services, L.P., the Supreme Court found HICPA’s absence of an explicit writing requirement to be significant. Relying on the Statutory Construction Act, the Court declined to “implicitly import” the written cancellation requirement from the UTPCPL into HICPA. Instead, the Court held that “HICPA requires home improvement contractors to permit consumers to rescind their contracts during the three-day cancellation period when consumers provide actual notice of cancellation to the contractors, even if that notice is not in writing.”
Consistent with this decision, home improvement contracts should allow consumers to rescind the contract within three business days of the contract date and should not require consumers to provide such notice in writing. If you have any questions about this decision or need guidance in ensuring your home improvement contract is legally compliant, contact Appel Yost today.
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