Prohibited Trade Practices

Del. Code tit. 6, ch. 25
in effect

Del. Code tit. 6, § 2501 Falsely advertising goods as property of an insolvent or as damaged.

No person engaged in the sale of any goods, wares or merchandise within the State shall publicly and falsely, and with intent to deceive the general buying public, advertise or otherwise represent that the goods, wares or merchandise are or were either in whole or in part the property of any insolvent or bankrupt or the assignee of any insolvent or bankrupt, or that such goods, wares or merchandise were either in whole or in part damaged by fire or accident of any kind.

Del. Code tit. 6, § 2502 Sale of goods in Wilmington as a removed stock or in other than regular business manner.

No person shall engage in the sale of any goods, wares or merchandise, within the corporate limits of the City of Wilmington, which have been brought to that city or consigned to any person in that city, for the purpose of the special sale thereof, as a removed stock of goods, or for the purpose of any sale thereof in any other than a regular business manner, by regular established merchants of that city. This section shall not prevent any person from embarking in the regular business of a merchant by any other method than those herein or elsewhere in the laws of this State prohibited, and this section shall not apply to goods and chattels shipped to Wilmington from other points of the State.

Del. Code tit. 6, § 2503 Penalties; presumption of intent to deceive.

Whoever violates § 2501 or § 2502 of this title shall be fined $100. Upon the trial of any person for such violation, the intent to deceive the general buying public shall be presumed where proof is made of a public and false advertisement or representation.

Del. Code tit. 6, § 2504 Price discrimination; penalty.

Whoever, doing business in this State and engaged in the production, manufacture or distribution of any commodity in general use, intentionally, for the purpose of destroying the competition of any regular, established dealer in such commodity or to prevent competition of any person who in good faith intends or attempts to become such dealer, discriminates between different sections, communities, or cities of this State, by selling the commodity at a lower rate in 1 section, community, or city, or any portion thereof, than in another, after making due allowance for any difference in the grade or quality and in the cost of transportation from the point of production, if a raw product, or from the point of manufacture, if a manufactured product, shall be fined not less than $200, nor more than $5,000 or imprisoned not more than 1 year, or both.

Del. Code tit. 6, § 2505 Delivery of unsolicited merchandise.

Where unsolicited merchandise is delivered to a person for whom it is intended such person has a right to refuse to accept delivery of this merchandise or such person may deem it to be a gift and use it or dispose of it in any manner without any obligation to the sender.

Del. Code tit. 6, § 2506 Limitation of actions.

Notwithstanding any other statute to the contrary, no action at law by the Attorney General brought under this chapter shall be initiated after the expiration of 5 years from the time the cause of action accrued; however, §§ 8117 and 8118 of Title 10 and any applicable tolling or savings provisions created under the common law shall apply.

Del. Code tit. 6, § 2507 Advertising of tobacco products on or in school properties prohibited.

(a) No person, firm, corporation, partnership or other organization shall advertise or cause to be advertised any tobacco products within 200 feet of any public or private school, excluding institutions of higher education. This section shall not apply to advertisements inside of a commercial establishment, except outward-facing advertisements placed in windows. (b) This section shall not be construed to prohibit the display of any message or advertisement opposing the use of tobacco products. Any message or advertisement opposing the use of tobacco products that is placed within 200 feet of a school may not contain the brand name of any tobacco product or the name of any tobacco company. (c) This section shall not be construed to prohibit an advertisement stating that a commercial establishment sells tobacco products, provided that the advertisement is on the premises or property of the commercial establishment and does not identify any tobacco product brand or any tobacco product manufacturer by name. (d) The Attorney General may file a complaint in the Court of Chancery or Superior Court for the county in which the alleged unlawful practice has been or is to be partially or completely performed. The Court of Chancery may enjoin any person, firm, corporation, partnership or other organization from the commission of any such act, and may award damages and costs. Whoever is found to be in violation of this section by the Superior Court shall be fined not more than $1,000 for the first offense and not more than $5,000 for each subsequent offense.

Del. Code tit. 6, § 2508 Sale of fur-containing apparel; requirements.

(a) No merchant shall sell, offer or display for sale any coat, jacket, garment, or other wearing apparel made wholly or partially of animal fur, regardless of the price of the wearing apparel or the amount or value of the fur contained therein, without having attached to and conspicuously displayed on such apparel a tag, label or sticker that clearly and legibly states in English that such apparel contains real animal fur. (b) This section shall apply only to new apparel that is sold by a merchant to a retail consumer in the first instance, and shall not apply to the resale of such apparel by second-hand, consignment, Goodwill or similar “resell” merchants. (c) This section shall apply only to the sale of new wearing apparel sold by a merchant in a retail store only. (d) Any merchant found to be in violation of this section shall be subject to a civil penalty of $200 per incident, regardless of the total number of articles of wearing apparel found in violation of this section during an incident. (e) This section shall become effective and enforceable on June 1, 2010.

Del. Code tit. 6, § 2509 Products for young children; prohibition of bisphenol-A.

(a) No manufacturer may sell or offer for sale in this State a children’s product that contains bisphenol-A. (b) After July 1, 2012, no merchant may, knowingly sell or offer for sale in this State a children’s product that contains bisphenol-A. (c) This section shall not apply to the sale of a used children’s product or to substances present in, or used in the production or packaging of, any drug, intended for use in humans or animals, as such term is defined in 21 U.S.C. § 321, that is manufactured or distributed consistent with the requirements of the Federal Food, Drug, and Cosmetic Act [21 U.S.C. § 301 et seq.] or the Public Health Service Act [42 U.S.C. § 201 et seq.]. (d) As used in this section: (1) “Child” means a person under 4 years of age. (2) “Children’s product” means an empty bottle or cup designed to be filled with food or liquid that is designed or intended by a manufacturer to be used by a child. (e) Violation of this section shall be a class A misdemeanor. The Superior Court shall have exclusive jurisdiction over violations of this section.

Del. Code tit. 6, § 2510 Deceptive foreclosure practices.

(a) No person shall make, use, or cause to be made or used a deceptive or fraudulent record, document, or statement in support of any foreclosure upon real property, including, without limitation, statements about the offering of a loan modification, the borrower’s history of payments, the validity of the assignment of the mortgage loan, the identity of the record holder of the mortgage loan, or the compliance with any other requirements of the Delaware Code or Superior Court rule. (b) The Attorney General shall have the same authority to enforce and carry out this section as is granted by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (c) The Attorney General shall have the same authority to enforce and carry out this section as is granted by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title; however, this section shall not be enforced by a private cause of action under § 2525 or § 2533 of this title or otherwise. (d) If a court or tribunal of competent jurisdiction finds that any person has wilfully violated this section, the Attorney General, upon petition to the court or tribunal, shall recover from the person, on behalf of the State, in addition to all costs, a civil penalty of not more than $10,000 per violation pursuant to § 2533 of this title. If the violation is against an elderly person or person with a disability, an additional civil penalty of not more than $10,000 per violation shall be recovered pursuant to § 2581 of this title. Each day that a wilful violation continues shall be considered a separate violation. (e) For the purpose of this section, a “wilful violation” occurs when the party committing the violation knew or should have known that the party’s conduct was of the nature prohibited by this section. (f) After confirmation of the foreclosure sale by Superior Court, title to real property sold to an innocent third-party purchaser for value at a foreclosure sale shall not be contested, clouded, or deemed to be unmarketable or uninsurable for title insurance based solely upon a violation of this section.

Del. Code tit. 6, § 2511 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Advertisement” means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into any obligation or acquire any title or interest in, any merchandise. (2) “Examination” means inspection, study or copying. (3) “Lease” means any lease, offer to lease or attempt to lease any merchandise for any consideration. (4) “Local telephone directory” means a telephone classified advertising directory or the business section of a telephone directory that is distributed free of charge to some or all telephone subscribers in a local area. (5) “Local telephone number” means a telephone number that has the 3-number prefix(es) used by the telephone service company(ies) for telephones physically located within the area covered by the local telephone directory in which the number is listed. The term does not include long distance numbers or toll or toll free numbers listed in a local telephone directory. (6) “Merchandise” means any objects, wares, goods, commodities, intangibles, real estate or services. (7) “Person” means an individual, corporation, government, or governmental subdivision or agency, statutory trust, business trust, estate, trust, partnership, unincorporated association, 2 or more of any of the foregoing having a joint or common interest, or any other legal or commercial entity. (8) “Sale” means any sale, offer for sale or attempt to sell any merchandise for any consideration. (9) “Unfair practice” means any act or practice that causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition. In determining whether an act or practice is unfair, violations of public policy as established by law, regulation, or judicial decision applicable in this State may be considered as evidence of substantial injury.

Del. Code tit. 6, § 2512 Purpose; construction.

The purpose of this subchapter shall be to protect consumers and legitimate business enterprises from unfair or deceptive merchandising practices in the conduct of any trade or commerce in part or wholly within this State. It is the intent of the General Assembly that such practices be swiftly stopped and that this subchapter shall be liberally construed and applied to promote its underlying purposes and policies.

Del. Code tit. 6, § 2513 Unlawful practice.

(a) The act, use, or employment by any person of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice, or the concealment, suppression, or omission of any material fact with intent that others rely upon such concealment, suppression, or omission, in connection with the sale, lease, receipt, or advertisement of any merchandise, whether or not any person has in fact been misled, deceived, or damaged thereby, is an unlawful practice. It shall also be an unlawful practice to misrepresent the geographic location of a business or supplier which raises or sells flowers and/or ornamental plants by any of the following: (1) Listing a local telephone number in a local telephone directory if: a. Calls to the telephone number are routinely forwarded or otherwise transferred to a business location that is outside the calling area covered by the local telephone directory other than to counties contiguous to this State; and b. The listing fails to identify the locality and state of the supplier’s business; or (2) Listing a fictitious business name or an assumed business name in a local telephone directory if: a. The name misrepresents the supplier’s geographic location; and b. The listing fails to identify the locality and state of the supplier’s business. (b) This section shall not apply: (1) To the owner or publisher of newspapers, magazines, publications or printed matter wherein such advertisement appears, or to the owner or operator of a radio or television station which disseminates such advertisement when the owner, publisher or operator has no knowledge of the intent, design or purpose of the advertiser; or (2) To any advertisement or merchandising practice which is subject to and complies with the rules and regulations, of and the statutes administered by, the Federal Trade Commission; or (3) To matters subject to the jurisdiction of the Public Service Commission, or of the Insurance Commissioner of this State, except for matters covered by § 1014 of Title 26, but only as they relate to community-owned energy generating facilities. (c) For purposes of this section, “in connection with” includes any unfair or deceptive conduct, as enumerated in subsection (a) of this section, that occurs before, during, or after the sale, lease, receipt, or advertisement of any merchandise.

Del. Code tit. 6, § 2514 Attorney General’s investigative demand — Things demanded.

Whenever the Attorney General has reason to believe that a person has engaged in, is engaging in, or is about to engage in, any practice declared by this chapter to be unlawful, the Attorney General may, pursuant to an order of any Judge of the Superior Court or of the Chancellor or Vice-Chancellor, prior to the institution of a civil or criminal proceeding against such person, issue and cause to be served upon such person, an investigative demand requiring such person to: (1) File a statement or report in writing under oath on such forms as the Attorney General may prescribe as to all the facts and circumstances concerning the sale, lease or advertisement of merchandise by such person; (2) Answer oral interrogatories under oath at such places and times as the Attorney General may reasonably specify as to all facts and circumstances concerning the sale, lease or advertisement of merchandise by such person; and (3) Produce for examination the original or copy of any advertisement, merchandise or sample thereof, record, book, document, tabulation, map, chart, photograph, report, memorandum, communication, mechanical transcription, account, paper or computer record as the Attorney General may specify in the demand.

Del. Code tit. 6, § 2515 Attorney General’s investigative demand — Contents.

Each Attorney General’s investigative demand shall be in writing and shall: (1) State the nature of the conduct constituting the alleged violation of this subchapter which is under investigation and the provision of law applicable thereto; (2) Describe the class or classes of material to be produced thereunder with such definiteness and certainty as to permit such material to be fairly identified; (3) Prescribe a return date which will provide a reasonable time within which the material so demanded may be assembled and made available for inspection and copying or reproduction; and (4) Identify the custodian to whom such material shall be made available or the official before whom such oral examination shall take place or with whom such written reports shall be filed.

Del. Code tit. 6, § 2516 Attorney General’s investigative demand — Limitations.

No such demand shall: (1) Contain any requirement which would be held to be unreasonable if contained in a subpoena issued by a court of this State in aid of a grand jury investigation of an alleged violation of this subchapter; or (2) Require the production of any evidence which would be privileged from disclosure if demanded by a subpoena issued by a court of this State in aid of a grand jury investigation of an alleged violation of this subchapter.

Del. Code tit. 6, § 2517 Attorney General’s investigative demand — Issuance of protective order.

(a) On motion promptly made by a person who receives such a demand from the Attorney General, the judge who authorized the issuance of the investigative demand, if available, and if not, another member of the judge’s court, upon notice and good cause shown, may make any order which is deemed appropriate and just to protect the person from an improper demand from the Attorney General. (b) If the Attorney General determines that it would not be in the best interests of the investigation to disclose the evidence on which the Attorney General relied to establish the belief that unlawful conduct has occurred, is occurring or is about to occur, the Attorney General may request, and the court may examine, in camera, the evidence upon which the Attorney General relied in order to rule on such a motion.

Del. Code tit. 6, § 2518 Impounding evidence.

Pursuant to an order of the Superior Court or the Court of Chancery, the Attorney General may impound the original or copy of any document or other material produced in accordance with § 2514 of this title, which material shall be retained in the possession of such custodian and under such circumstances as the Court may designate until the completion of all proceedings in connection with which the same is produced.

Del. Code tit. 6, § 2519 Service of demand.

Service of any demand by the Attorney General under § 2514 of this title shall be made personally within this State, if the person can be found therein; but if such service cannot be made, substituted service may be made in the following manner: (1) Personal service outside of this State; or (2) The mailing by registered mail to the last known place of business, residence or abode within or without this State of the person to whom such demand is directed; or (3) As to any person other than a natural person, in the manner provided in § 321 or §§ 371 to 385 of Title 8 and in the manner provided in the procedural rules of the court authorizing the issuance of the demand; or (4) Such service as the Court may direct in lieu of personal service within this State.

Del. Code tit. 6, § 2520 Failure to respond; order; penalties.

If any person fails to respond to any investigative demand issued by the Attorney General under § 2514 of this title, the Attorney General may, after due notice, apply to the court which authorized the issuance of the demand for an order, and the court, after a hearing on said application, may enter an order: (1) Requiring said person to respond to the demand; (2) Granting injunctive relief restraining any practice or act declared by this chapter to be unlawful; (3) Vacating, annulling or suspending the corporate charter of a corporation created by or under the laws of this State or revoking or suspending the certificate of authority to do business in this State of a foreign corporation, or revoking or suspending any other licenses, permits or certificates issued pursuant to law to such person which are used to further the allegedly unlawful practice; (4) Adjudging such person in contempt of court; and (5) Granting such other relief or imposing any other penalty or fine as may be determined by the court in its discretion to be appropriate to obtain compliance with the Attorney General’s investigative demand.

Del. Code tit. 6, § 2522 Proceedings brought by the Attorney General.

(a) Whenever it appears to the Attorney General that a person has engaged in, is engaging in or is about to engage in any practice declared by this subchapter to be unlawful, the Attorney General may institute an action in accordance with subchapter II of Chapter 25 of Title 29 in order to enjoin such practices or any acts being done in furtherance thereof. The complaint shall state the nature of the conduct constituting a violation of this subchapter and the relief sought thereunder. (b) If a court of competent jurisdiction finds that any person has wilfully violated this subchapter, upon petition to the court by the Attorney General in the original complaint or made at any time following the court’s finding of a wilful violation, the person shall forfeit and pay to the State a civil penalty of not more than $10,000 for each violation. For purposes of this subchapter, a wilful violation occurs when the person committing the violation knew or should have known that the conduct was of the nature prohibited by this subchapter. (c) If a court of competent jurisdiction finds that any person has violated this subchapter, upon petition to the court by the Attorney General in the original complaint or made at any time following the court’s finding of a violation, the court may order the violator to cease and desist the unlawful conduct prospectively, return any moneys obtained unlawfully, and when appropriate freeze designated assets of the violator, order restitution, rescission, or recoupment, or grant other relief appropriate to prevent violators from being unjustly enriched.

Del. Code tit. 6, § 2523 Restraining orders; injunctions.

In actions filed under this subchapter, the Court of Chancery after a hearing may grant relief by issuing temporary restraining orders, preliminary or permanent injunctions, and such other relief as may be necessary to prevent any person from engaging in activities declared by this subchapter to be unlawful or which may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any practice declared to be unlawful by this subchapter. Unless otherwise specified in this subchapter, the procedure for all such proceedings shall be as provided in the Rules of Procedure of the Court of Chancery or as established by the usual practice and procedure in said Court.

Del. Code tit. 6, § 2524 Appointment of receiver; powers; damages; administration of estate; jurisdiction.

(a) If it should appear to the Court of Chancery after a hearing, that a receiver should be appointed in cases of substantial and wilful violations of the provisions of this subchapter, the Court may appoint such receiver. (b) The receiver shall have the power to sue for, collect, receive and take possession of all the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes and property of every description, acquired by means of any practice declared to be unlawful by this subchapter, including property with which such property has been mingled if it cannot be identified in kind because of such commingling, and to sell, convey, and assign the same and hold and dispose of the proceeds thereof under the direction of the Court. (c) Any person who has suffered damages as a result of the use or employment of any such unlawful acts or practices and submits proof to the satisfaction of the Court that that person has in fact been damaged, may participate with general creditors in the distribution of the assets to the extent of out-of-pocket losses. (d) The receiver shall settle the estate and distribute the assets under the direction of the Court. (e) The Court shall have jurisdiction of all questions arising in such proceedings and may make such orders and judgments therein as may be required.

Del. Code tit. 6, § 2525 Private cause of action; savings clause for private claims against persons who acquired property by unlawful practices.

(a) A private cause of action shall be available to any victim of a violation of this subchapter. Such cause of action may be brought in any court of competent jurisdiction in this State without prior action by the Attorney General as provided for in this subchapter. (b) Subject to an order of the court terminating the business affairs of any person after receivership proceedings held pursuant to this subchapter, the provisions of this subchapter shall not bar any claim against any person who has acquired any money or property, real or personal, by means of any acts or practices declared by this subchapter to be unlawful.

Del. Code tit. 6, § 2526 Costs.

In any action brought under the provisions of this subchapter in which any person is found to have engaged in, or be about to engage in, a practice declared by this subchapter to be unlawful, the court may award costs to the Attorney General for the use of the State.

Del. Code tit. 6, § 2527 Consumer Protection Fund.

(a) All money received by the State as a result of actions brought by the Attorney General pursuant to subchapter II of Chapter 25 of Title 29 or pursuant to the state or federal antitrust laws shall be credited by the State Treasurer to a fund to be known as the “Consumer Protection Fund.” (b) The Consumer Protection Fund will be a revolving fund and shall consist of funds transferred to the revolving fund pursuant to actions brought pursuant to subchapter II of Chapter 25 of Title 29 or an antitrust action, gifts or grants made to the revolving fund and funds awarded to the State or any agency thereof for the recovery of costs and attorney fees in a consumer fraud or an antitrust action; provided, however, that to the extent that such costs constitute reimbursement for expenses directly paid from constitutionally dedicated funds, such recoveries shall be transferred to the constitutionally dedicated fund. (c) Money in the Consumer Protection Fund shall be used for the payment of expenses incurred by the Attorney General in connection with activities under subchapter II of Chapter 25 of Title 29, this chapter, laws prohibiting financial fraud, or the state or federal antitrust laws or, if approved by the Director of the Office of Management and Budget and the Controller General, for other Department of Justice expenses resulting from General Fund deficits. At the end of any fiscal year, if the balance in the Consumer Protection Fund exceeds $10,000,000, the excess shall be withdrawn from the Consumer Protection Fund and deposited in the General Fund. (d) The Attorney General is authorized to expend from the Consumer Protection Fund such moneys as are necessary for the payment of salaries, costs, expenses and charges incurred in the preparation, institution and maintenance of consumer protection, financial fraud, and antitrust actions under state or federal antitrust laws. (e) When it is legally established that the State, or agencies thereof, public bodies of the State or individuals have a right to a portion of funds in the Consumer Protection Fund, the Attorney General is authorized to approve release of such funds to the appropriate fund, entity or recipient. (f) From time to time as determined by the Delaware State Clearinghouse Committee, the Attorney General shall submit a detailed report to members of the Committee of revenues, expenditures and program measures for the fiscal period in question. Such report shall also be sufficiently descriptive in nature so as to be concise and informative. The Committee may cause the Attorney General to appear before the Committee and to answer such questions as the Committee may require.

Del. Code tit. 6, § 2531 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Article” means a product as distinguished from its trademark, label, or distinctive dress in packaging. (2) “Certification mark” means a mark used in connection with the goods or services of a person other than the certifier to indicate geographic origin, material, mode of manufacture, quality, accuracy, or other characteristics of the goods or services or to indicate that the work or labor on the goods or services was performed by members of a union or other organization. (3) “Collective mark” means a mark used by members of a cooperative, association, or other collective group or organization to identify goods or services and distinguish them from those of others, or to indicate membership in the collective group or organization. (4) “Mark” means a word, name, symbol, device, or any combination of the foregoing in any form or arrangement. (5) “Person” means an individual, corporation, government, or governmental subdivision or agency, statutory trust, business trust, estate, trust, partnership, unincorporated association, 2 or more of any of the foregoing having a joint or common interest, or any other legal or commercial entity. (6) “Service mark” means a mark used by a person to identify services and to distinguish them from the services of others. (7) “Trademark” means a mark used by a person to identify goods and to distinguish them from the goods of others. (8) “Trade name” means a word, name, symbol, device, or any combination of the foregoing in any form or arrangement used by a person to identify a business, vocation, or occupation and distinguish it from the business, vocation, or occupation of others.

Del. Code tit. 6, § 2532 Deceptive trade practices.

(a) A person engages in a deceptive trade practice when, in the course of a business, vocation, or occupation, that person: (1) Passes off goods or services as those of another; (2) Causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services; (3) Causes likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another; (4) Uses deceptive representations or designations of geographic origin in connection with goods or services; (5) Represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have, or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have; (6) Represents that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; (7) Represents that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another; (8) Disparages the goods, services, or business of another by false or misleading representation of fact; (9) Advertises goods or services with intent not to sell them as advertised; (10) Advertises goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity; (11) Makes false or misleading statements of fact concerning the reasons for, existence of, or amounts of, price reductions; or (12) Engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding. (b) In order to prevail in an action under this chapter, a complainant need not prove competition between the parties or actual confusion or misunderstanding. (c) This section does not affect unfair trade practices otherwise actionable at common law or under other statutes of this State.

Del. Code tit. 6, § 2533 Remedies.

(a) A person likely to be damaged by a deceptive trade practice of another may be granted an injunction against it under the principles of equity and on terms that the court considers reasonable. Proof of monetary damage, loss of profits, or intent to deceive, is not required. Relief granted for the copying of an article shall be limited to the prevention of confusion or misunderstanding as to source. (b) The court in exceptional cases may award reasonable attorneys’ fees to the prevailing party. Costs or attorneys’ fees may be assessed against a defendant only if the court finds that defendant has wilfully engaged in a deceptive trade practice. (c) The relief provided in this section is in addition to remedies otherwise available against the same conduct under the common law or other statutes of this State. If damages are awarded to the aggrieved party under the common law or other statutes of this State, such damages awarded shall be treble the amount of the actual damages proved. (d) The Attorney General shall have standing to seek, on behalf of the State, any remedy enumerated in this section for any violation of § 2532 of this title that is likely to harm any person, including but not limited to individual retail purchasers and consumers of goods, services or merchandise. (e) If a court of competent jurisdiction finds that any person has wilfully violated this subchapter, upon petition to the court by the Attorney General in the original complaint or at any time following the court’s finding of a wilful violation, the person shall forfeit and pay to the State a civil penalty of not more than $10,000 for each violation. For purposes of this subchapter, a wilful violation occurs when the person committing the violation knew or should have known that the conduct was of the nature prohibited by this subchapter.

Del. Code tit. 6, § 2534 Application.

(a) This chapter does not apply to: (1) Conduct in compliance with the orders or rules of, or a statute administered by, a federal, state, or local governmental agency, or a board or commission organized under Professions and Occupations in Title 24, and shall not be the subject of a private cause of action thereunder; provided that said conduct has been addressed by the applicable statute, order, or rule of a board or commission organized under Title 24 and said order or rule does not clearly conflict with a specific provision of the consumer protection laws the Attorney General is charged to enforce; (2) Publishers, broadcasters, printers, or other persons engaged in the dissemination of information or reproduction of printed or pictorial matter who publish, broadcast, or reproduce material without knowledge of its deceptive character; or (3) Actions or appeals pending on April 19, 1965. (b) Section 2532(a)(2) and (3) of this title do not apply to the use of a service mark, trademark, certification mark, collective mark, trade name, or other trade identification that was used and not abandoned before April 19, 1965, if the use was in good faith and is otherwise lawful except for this chapter.

Del. Code tit. 6, § 2535 Uniformity of interpretation.

This chapter shall be construed to effectuate its general purpose to make uniform the law of those states which enact it.

Del. Code tit. 6, § 2541 Definitions.

As used in this subchapter: “Credit card” means any card or document entitling its holder to obtain any goods or services by the production of the card or document, and entitling its holder to tender payment for such goods and services at a later date.

Del. Code tit. 6, § 2542 Prohibition upon distribution.

No person, or any representative thereof, shall distribute any credit card to any person, association, corporation, partnership, or any representative thereof, within this State unless such credit card shall have been requested or unless the issuer shall have given at least 14 days notice of intention to issue such card. The notice shall also include a conspicuous legend that the prospective holder has the right to refuse the credit card and shall be accompanied by a postage prepaid, preaddressed envelope or card upon which the prospective holder may indicate such refusal. Use of the credit card by the intended recipient shall constitute acceptance, but there shall be no liability by the intended recipient prior to the use of same. This subchapter shall not apply to the issuance of renewal or substitute cards.

Del. Code tit. 6, § 2543 Penalty.

Whoever violates § 2542 of this title shall be fined not less than $100 nor more than $500 for each offense.

Del. Code tit. 6, § 2544 Injunctive relief.

Whenever the Attorney General has reason to believe that a violation of § 2542 of this title is a continuing practice, the Attorney General may apply to the Court of Chancery and may obtain the appropriate injunctive relief against any violator.

Del. Code tit. 6, § 2551 Definitions.

As used in this chapter, unless the context otherwise requires: (1) “Franchise” means a contract or other arrangement governing the business relationship within this State between a franchised distributor and a franchisor where the franchised distributor is required to pay more than $100 to enter into such contract or other arrangement; provided, however, that a franchised distributor as defined under paragraph (2)(d) of this section shall not be required to have paid any consideration to enter into such contract or other arrangement. (2) “Franchised distributor ” means an individual, partnership, corporation, or unincorporated association with a place of business within the State, and engaged in the business of: (a) Purchasing or taking on consignment products which bear the trademark or trade name of the manufacturer, producer or publisher for the primary purpose of selling such products to retail outlets; or (b) Selling in or through retail outlets products which bear the trademark or trade name of no more than 3 manufacturers, producers, publishers, trademark licensors, or trade name licensors; or (c) Purchasing or taking on consignment, books, magazines, journals, newspapers, or other publications for the primary purpose of selling such publications to retail outlets; or (d) Operating a service station, filling station, store, garage or other place of business for the sale of motor fuel for delivery into the service tank or tanks of any vehicle propelled by an internal combustion engine. (3) “Franchisor” means an individual, partnership, corporation or unincorporated association in the business of: (a) Distributing or selling to one or more franchised distributors, on its own behalf or on behalf of another, products which bear the trademark or trade name of the manufacturer, producer or publisher; or (b) Licensing the use of one or more trademarks or trade names to one or more franchised distributors; or (c) Distributing or selling to one or more franchised distributors, on its own behalf or on behalf of another, books, magazines, journals, newspapers, and/or other publications published by it or by another; or (d) Producing or refining of petroleum products, or the producer or fabricator of any automotive products sold or distributed by a service station. (4) “Products” means any tangible items offered for sale irrespective of their nature, including, without limiting the generality of the term, all types of publications.

Del. Code tit. 6, § 2552 Unjust termination of, or failure to renew, a franchise.

(a) Termination of a franchise by a franchisor shall be deemed to be “unjust,” or to have been made “unjustly,” if such termination is without good cause or in bad faith. Any termination of a franchise which is not unjust shall be deemed to be “just,” or to have been made “justly.” (b) The failure of a franchisor to renew a franchise shall be deemed to be “unjust,” or to have been made “unjustly,” if such failure to renew is without good cause or in bad faith. Any failure to renew a franchise which is not unjust shall be deemed to be “just,” or to have been made “justly.” (c) A provision of a franchise which permits a franchisor to terminate that franchise, which provision does not specify the grounds upon which such termination may be made, shall be construed to permit the franchisor to make only a just termination. (d) A provision of a franchise which permits a franchisor to fail to renew that franchise, which provision does not specify the grounds upon which such failure to renew may be made, shall be construed to permit the franchisor only justly to fail or refuse to renew. (e) A provision in a franchise permitting a franchisor to make an unjust termination of a franchise is against the public policy of this State and shall not be enforced in the courts of this State. (f) A provision in a franchise permitting a franchisor unjustly to fail or refuse to renew a franchise is against the public policy of this State and shall not be enforced in the courts of this State. (g) No franchisor may unjustly terminate a franchise. (h) No franchisor may unjustly fail or refuse to renew a franchise. (i) No franchisor may unjustly refuse to deal with a franchised distributor with whom the franchisor has been dealing for at least 2 years. (j) Notwithstanding any terms of the franchise agreement to the contrary, no franchisor who leases real or personal property to a franchised distributor may charge the franchised distributor a rent or other charge for the use or occupancy of such real or personal property which is unreasonable or excessive in light of the franchisor’s interest in such real or personal property, and the purpose to which the real or personal property is being used. The refusal of the franchisor to renew a lease for real or personal property except upon the payment of a rent or other charge which is unreasonable or excessive in light of the use to which the property has been placed by the franchisor and/or the interest of the franchisor in the real or personal property shall be deemed to be an unjust termination of the franchise.

Del. Code tit. 6, § 2553 Remedies.

(a) If a franchisor (1) unjustly terminates a franchise, or (2) unjustly fails or refuses to renew a franchise, or (3) threatens, or attempts, or gives notice that it intends to attempt unjustly to terminate a franchise, or (4) threatens, or attempts, or gives notice that it intends to attempt unjustly to refuse to renew a franchise, then the franchised distributor whose franchise is threatened shall be entitled to recover damages from the franchisor and, in addition, shall be entitled to secure in the Court of Chancery of this State, subject to general equitable principles, an order enjoining such termination or, in case of a failure or refusal to renew, a mandatory order for renewal of the franchise. Pending the issuance of such an order, the franchised distributor shall be entitled to an order enjoining such termination pendente lite, or in case of a failure or refusal to renew, a mandatory order extending the franchise pendente lite. Any such order, whether final or pendente lite, shall contain provisions directing the franchisor to sell or consign to the franchised distributor the products covered by the franchise and/or to license to the franchised distributor the trademarks or trade names covered by the franchise, and otherwise to deal with the franchised distributor under the terms of the franchise so terminated. (b) Without limiting any other provisions of this chapter, if a franchisor unjustly refuses to deal with a franchised distributor with whom the franchisor has been dealing for at least 2 years, the franchised distributor shall be entitled to recover damages from the franchisor pursuant to subsection (a) of this section plus all other damages (including, without limitation, loss of profits) allowed under the law of this State; and, in addition, shall be entitled to secure in the Court of Chancery of this State an order directing the franchisor to deal with the franchised distributor on fair and competitive terms. Pending the issuance of such final order, the franchised distributor shall be entitled to secure such a mandatory order pendente lite. (c) Except as otherwise provided in subsection (b) of this section, damages recoverable pursuant to the provisions of this chapter shall include, but shall not be limited to, the following: (1) A fractional portion of the franchised distributor’s tangible assets (both real and personal) in this State used with respect to the terminated or unrenewed franchise, including, but not limited to, sales outlets and facilities, offices, warehouses, trucks and the furnishing, equipment and accessories therein; the numerator of the fraction shall consist of the franchised distributor’s gross sales (in the most recently completed fiscal year) within this State attributable to the terminated or unrenewed franchise, and the denominator of the fraction shall consist of the franchised distributor’s total gross sales (in the most recently completed fiscal year) in this State; and (2) Loss of goodwill; and (3) Loss of profits, which loss shall be presumed to be no less than 5 times the profit obtained by the franchised distributor, by virtue of the terminated franchise, in the most recently completed fiscal year; and (4) All other damages allowed under the law of this State; and (5) The reasonable counsel fees and expenses incurred in the action or actions brought pursuant to this chapter.

Del. Code tit. 6, § 2554 Franchisee worker classification.

Individuals or entities who are parties to a franchise agreement as set out by the Federal Trade Commission shall not be deemed employees for purposes of Chapter 11 of Title 19.

Del. Code tit. 6, § 2555 Notice required to terminate or elect not to renew a franchise.

Notwithstanding any provision in a franchise agreement which provides otherwise, any termination of a franchise or election not to renew a franchise must be made on at least 90 days’ notice.

Del. Code tit. 6, § 2556 Application.

This law shall apply to franchises in existence on July 8, 1970, and the renewal of such franchises, as well as franchises subsequently executed.

Del. Code tit. 6, § 2561 Definitions.

As used in this subchapter: (1) “Person” includes an individual, corporation, trust, estate, partnership, unincorporated association, or any other legal or commercial entity. (2) “Pyramid or chain distribution scheme” means a sales device whereby a person, upon a condition that the person part with money, property or any other thing of value, is granted a franchise license, distributorship or other right which person may further perpetuate the pyramid or chain of persons who are granted such franchise, license, distributorship or right upon such condition. A limitation as to the number of persons who may participate, or the presence of additional conditions upon the eligibility for such a franchise, license, distributorship or other right recruit or upon the receipt of profits therefrom, does not change the identity of the scheme as a pyramid or chain distribution scheme.

Del. Code tit. 6, § 2562 Unlawful practice.

The use of a pyramid or chain sales distribution scheme in connection with the solicitation of investments in the form of money, property or any other thing of value is hereby declared to be an unlawful practice under § 2513 of this title.

Del. Code tit. 6, § 2563 Prohibition.

(a) No person, either directly or through the use of agents or other intermediaries, shall promote, sell, attempt to sell, offer or grant participation in a pyramid or chain distribution scheme. (b) Whoever, directly or through the use of agents or intermediaries, violates subsection (a) of this section shall be fined not more than $5,000, or imprisoned not more than 3 years, or both. (c) The Superior Court shall have exclusive jurisdiction of offenses under this section.

Del. Code tit. 6, § 2564 Contracts void; civil liability.

(a) Any contract made in violation of § 2563 of this title shall be void and any person who, directly or through the use of agents or intermediaries, induces or causes another person to participate in a pyramid or chain distribution scheme shall be liable to that person in an amount equal to the sum of: (1) Twice the amount of any consideration paid; and (2) In the case of any successful action to enforce such liability, the costs of the action together with a reasonable attorney’s fee, as determined by the court. (b) An action under this section may be brought in any court in this State otherwise having jurisdiction over the dollar amount being sought by way of recovery within 1 year from the date on which the consideration was paid.

Del. Code tit. 6, § 2571 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Agent” means any individual, partnership, corporation or trustee defined as a broker in § 2901 of Title 24, acting on behalf of a seller or buyer of residential real property. (2) “Buyer” means any individual, partnership, corporation or trustee purchasing any estate or interest in real property. (3) “Final settlement” means the time at which the parties have signed and delivered all papers and consideration to convey title to the estate or interest in residential real property being conveyed. (4) “Residential real property” means any estate or interest in a manufactured housing lot or real property, improved by dwelling units for 1-4 families. (5) “Seller” means any individual, partnership, corporation or trustee transferring residential real property. (6) “Subagent” means any individual, partnership, corporation or trustee defined as a broker or sales person in § 2901 of Title 24 acting on behalf of an agent.

Del. Code tit. 6, § 2572 Disclosure of material defects.

(a) Except as excluded by § 2577 of this title hereof, a seller transferring residential real property shall disclose, in writing, to the buyer, agent and subagent, as applicable, all material defects of that property that are known at the time the property is offered for sale or that are known prior to the time of final settlement. (b) This disclosure shall be made in writing before the seller signs the listing agreement and shall be updated as necessary for any material changes occurring in the property before final settlement.

Del. Code tit. 6, § 2572A Radon testing and disclosure.

(a) Except as excluded by § 2577 of this title, every purchaser of any interest in residential real property on which a residential dwelling exists shall be notified that said property may present the potential for exposure to radon. (b) Except as excluded by § 2577 of this title, the seller of any interest in residential real property on which a residential dwelling exists is required to provide the buyer with any information on radon from tests or inspections in the seller’s possession, and notify the buyer of any known radon hazards. (c) The Department of Health and Social Services shall develop the content of written information that the selling broker shall provide to the buyer of any interest in residential real property on which a residential dwelling exists. The information shall describe potential hazards of exposure to radon, testing for radon and radon remediation. (d) The Delaware Real Estate Commission shall develop a form that will document that subsections (a), (b) and (c) of this section have occurred. The form shall be utilized for every transfer of residential real property as described in this section and shall include: (1) The property address; (2) The seller’s disclosure of the presence of radon hazards, if known; (3) The buyer’s acknowledgement that information about radon was received; (4) The buyer’s acknowledgement of that buyer’s option to test for radon; (5) The seller’s acknowledgement that the seller has been informed of the seller’s obligation and is aware of that seller’s responsibility to ensure compliance with this section; and (6) Signatures of the buyer and seller attesting to the above and the date so signed.

Del. Code tit. 6, § 2573 Property condition report.

The agent, subagent or seller, as applicable, shall give a copy of the Seller’s Disclosure of Real Property Condition Report to all prospective buyers or prospective buyer’s agent prior to the time the buyer makes an offer to purchase. This written disclosure form, signed by buyer and seller, shall become a part of the purchase agreement.

Del. Code tit. 6, § 2574 Other inspections or warranties.

The seller’s completed disclosure form is a good faith effort by the seller to make the disclosures required by this subchapter, and is not a warranty of any kind by the seller or any agents or subagents representing seller or buyer in the transfer and is not a substitute for any inspections or warranties that the seller or buyer may wish to obtain.

Del. Code tit. 6, § 2575 Cause of action.

The buyer shall not have a cause of action against the seller, agent and/or subagent for: (1) Material defects in condition of the residential real property disclosed to the buyer prior to the buyer making an offer to purchase; (2) Material defects developed after the offer was made but disclosed prior to final settlement, provided seller has complied with the agreement of sale; or (3) Material defects which occur after final settlement.

Del. Code tit. 6, § 2576 Applicability [For application of this section, see 80 Del. Laws, c. 308, § 2].

This subchapter shall apply to transfers by sale, exchange, installment land sale contract, lease with an option to purchase or ground lease of a manufactured housing lot, or residential real property, improved with dwelling units for 1-4 families, or vacant land zoned for residential use and marketed as appropriate for the construction of a dwelling for 1-4 families.

Del. Code tit. 6, § 2577 Exemptions.

This subchapter shall not apply to the following transfers of residential real property: (1) Transfers governed by the Delaware Out-of-State Land Sales and Promotions Act [repealed] where the property disclosure report required by that law is provided to a prospective purchaser. (2) Transfers pursuant to court order such as transfers ordered by the Court of Chancery in the administration of an estate, trust or guardianship or pursuant to a writ of execution, by a trustee in bankruptcy or a receiver, by eminent domain, and transfers resulting from a decree for specific performance. (3) Transfers to a mortgagee by a mortgagor in default by a deed in lieu of foreclosure. (4) Transfers by any sheriff’s sale for default on an obligation secured by a mortgage, judgment, tax or other lien. (5) Transfers by a fiduciary in the course of the administration of the decedent’s estate, guardianship or trust. (6) Transfers from 1 co-owner to 1 or more other co-owners. (7) Transfers made to a spouse or to a person or persons in the lineal line of consanguinity of 1 or more of the transferors. (8) Transfers between spouses resulting from a property settlement incident to a divorce. (9) Transfers to or from any government entity.

Del. Code tit. 6, § 2578 Property condition report form [For application of section, see 80 Del. Laws, c. 145, § 3].

(a) The Delaware Real Estate Commission shall develop a standard form or forms to be used as the Seller’s Disclosure of Real Property Condition Report, for the disclosure of the condition of residential real property. This form or forms for different circumstances shall be promulgated and amended from time to time by the Real Estate Commission, including such additional relevant content as the Commission deems appropriate. (b) The form for new construction shall include the following: “An automatic fire sprinkler system or other fire suppression systems may be available. For further information, visit www.statefiremarshall.delaware.gov.”. (c) Each form shall also include the following: “The cost of repairing and repaving the streets adjacent to the property is paid for by (check one): ____ The property owner(s), estimated fees: $______. ____ Delaware Department of Transportation or the State. ____ Unknown. Note to Buyer: Repairing and repaving of the streets can be very costly.” (d) Each form shall also include the results of the radon test or tests required to be disclosed by § 2572A of this title.

Del. Code tit. 6, § 2580 Definitions.

(a) “Elder person” means a person who is 65 years of age or older. (b) “Major life activities” includes functions such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working. (c) “Person with a disability” means a person who has a disability as defined in § 4602 of this title. (d) “Substantially limits” means substantially interferes with or affects over an extended period of time. Minor temporary ailments or injuries shall not be considered physical or mental impairments which substantially limit a person’s major life activities. Examples of minor temporary ailments are colds, influenza or sprains or minor injuries.

Del. Code tit. 6, § 2581 Civil penalty; disposition of funds.

(a) If any person is found to have violated any provision of this chapter, and said violation is committed against an elder person or a person with a disability, in addition to any criminal or civil penalty otherwise set forth or imposed, the court may impose an additional civil penalty not to exceed $10,000 for each violation. (b) The civil penalties imposed pursuant to subsection (a) of this section shall be deposited with the State Treasurer and placed into the Consumer Protection Fund as created by § 2527 of this title, shall be subject to appropriation by the General Assembly, and shall be used for the investigation and prosecution of deceptive acts against elder and disabled persons and for consumer education initiatives.

Del. Code tit. 6, § 2582 Determination of civil penalty.

In determining whether to impose an enhanced civil penalty under this subchapter and the amount thereof, the court shall consider the extent to which 1 or more of the following factors are present: (1) Whether the defendant’s conduct was in disregard of the rights of the elder person or person with a disability; (2) Whether the defendant knew or should have known that the defendant’s conduct was directed to an elder person or person with a disability; (3) Whether the elder person or person with a disability was more vulnerable to the defendant’s conduct because of age, poor health, infirmity, impaired understanding, restricted mobility or disability than other persons and whether the elder person or person with a disability actually suffered substantial physical, emotional or economic damage resulting from the defendant’s conduct; (4) Whether the defendant’s conduct caused an elder person or person with a disability to suffer any of the following: a. Mental or emotional anguish; b. Loss of or encumbrance upon a primary residence of the elder person or person with a disability; c. Loss of or encumbrance upon the principal employment or principal source of income of the elder person or person with a disability; d. Loss of funds received under a pension or retirement plan or a government benefits program; e. Loss of property set aside for retirement or for personal or family care and maintenance; or f. Loss of assets essential to the health and welfare of the elder person or person with a disability. (5) Any other factors the court deems appropriate.

Del. Code tit. 6, § 2583 Cause of action; enhanced penalties.

(a) An elder person or person with a disability who suffers damage or injury as a result of an offense or violation described in this chapter has a cause of action to recover actual damages, court costs and reasonable attorney’s fees. (b) If a private cause of action is brought by the victim of a violation of this subchapter, and said victim was 65 years of age or older or a person with a disability when the violation occurred, the victim shall be entitled to recover 3 times the amount of the victim’s compensatory damages if a violation of this subchapter is established. Such treble damages shall be in addition to any other damages to which the victim is entitled pursuant to common law or other provisions of the Delaware Code. (c) Restitution ordered pursuant to this section has priority over a civil penalty imposed pursuant to this subchapter.

Del. Code tit. 6, § 2584 Referrals for abuse, neglect and exploitation.

The Attorney General shall establish and maintain referral procedures with the Division of Services for Aging and Adults with Physical Disabilities within the Department of Health and Social Services in order to provide any necessary intervention and assistance to elder persons or persons with disabilities who may have been victimized by violations of this chapter.

Del. Code tit. 6, § 2586 Purpose.

The purpose of this subchapter is to safeguard the public against deceit and misrepresentation and to ensure, foster and encourage truthful practices and disclosure in home food service plan sales.

Del. Code tit. 6, § 2587 Definitions.

As used in this subchapter, the following definitions shall apply: (1) “Buyer” means both the actual and prospective purchaser of a home food service plan, but does not include persons purchasing for resale. (2) “Contract” means all of the collective written or oral agreements between a seller and a buyer relating to the purchase of a home food service plan, except promissory notes or other financing agreements. (3) “Food item” means each edible product sold as part of a home food service plan, including, but not limited to, each constituent part or kind of meat cut from a primal source, each kind of whole poultry or poultry part, seafood products and other like products. (4) “Home food service plan” means a plan of food items or food items in combination with non-food items and/or service offered by the seller for profit and for sale in the consumer’s home, whether or not a membership fee or similar charge is involved. Sales of immediately consumable food items, “Meals on Wheels” or similar programs, “fund-raising efforts” and meals prepared in the consumer’s home by another are not within the definition of a “home food service plan.” (5) “Item price” means the price of a food or non-food item sold as part of a home food service plan, computed to the nearest tenth of 1 cent when less than $1.00 and to the nearest cent when $1.00 or more. The item price, exclusive of any service charge(s), shall be expressed in terms of the price per unit of weight, measure or count set forth in “Uniform Unit Pricing Regulation” in the current edition of National Institute of Standards and Technology Handbook 130. (6) “Non-food item” means each inedible product sold as part of a home food service plan, including, but not limited to, paper products, health and beauty products, detergents, cleaners and disinfectants, rolls of wrapping and like products. The term does not include food items and durable consumer goods such as appliances. (7) “Primal source” means the following cuts: a. For beef, the primal sources are the round, flank, loin, rib, plate, brisket, chuck and shank; b. For veal and lamb or mutton, the primal sources are the leg, flank, loin, rack (rib) and shoulder; and c. For pork, the primal sources are the belly, loin, ham, spareribs, shoulder and jowl. (8) “Seller” means any person, partnership, corporation or association, however organized, engaged in the sale of a home food service plan. (9) “Service charge” means the total price for any additional features, services and processing associated with the purchase of a home food service plan, whether stated in terms of membership fees or otherwise.

Del. Code tit. 6, § 2588 Contract and disclosure requirements.

(a) At the time of sale, the seller shall provide the buyer with a written document referred to in this section as the “written agreement,” which shall clearly and conspicuously disclose all of the following: (1) The name, address and telephone number of the seller and the name and address of the buyer; (2) The date of the contract; (3) The price of the food and non-food items included in the home food service plan; (4) The service charge or the price of any service charges associated with the home food service plan; (5) The total price of the home food service plan, including the price of the food and non-food items, and the price of any service charge(s); and (6) A statement that the buyer shall have the right to cancel the home food service plan contract until midnight of the third business day after the date on which the buyer executes the contract or until midnight of the third business day after the day on which the buyer takes first delivery or until midnight of the third business day after the day on which the seller provides the buyer with the fully executed copy of the contract, whichever is later, by giving written notice of cancellation to the seller. Compliance with requirements of Chapter 44 of this title governing the form of notice of right of cancellation in home solicitation sales shall be deemed satisfactory notice of the requirements of this regulation. (b) In addition to the above disclosures required in the written agreement, all of the following disclosures are required to be given to the buyer at the time of sale: (1) A written list of all food and non-food items to be sold, which shall include: a. The identity of each item and, where applicable, the United States Department of Agriculture quality grade of the item, if so graded; the primal source; and the brand or trade name; b. The quantity of each item sold; c. The estimated serving size by net weight of each piece of meat, poultry and seafood item offered for sale under the home food service plan; provided however, that such estimates shall not differ from the actual weight at the time of delivery by more than 5 percent, and that the dollar value of the meat, poultry and seafood items delivered is equal to or greater than that represented to the buyer; and d. The net weight, measure or count of all other food and non-food items offered for sale; (2) A current item price list stating, in dollars and cents, the price per kilogram or pound or other appropriate unit of measure and the total sale price of each item to be delivered. This price list shall clearly and conspicuously identify whether there are additional costs disclosed in the written agreement relating to any “service charges” associated with the purchase of the home food service plan; (3) If a membership is sold, a written statement of all terms, conditions, benefits and privileges applicable to the membership; and (4) If a service charge is included, a written statement specifically identifying the service(s) provided and the price(s) charged for them. (c) At the time of delivery, the seller shall provide a receipt, for signature by the buyer, disclosing all of the following information: (1) The identity of each food and non-food item and the net quantity of the contents in terms of either weight, measure or count, as required by applicable law. The net weight of each food item delivered shall be within the limit specified in paragraph (b)(1)c. of this section; and (2) The item price and total sales price of each food and non-food item. The item price shall be the same as that specified on the item price list given to the buyer at the time of sale.

Del. Code tit. 6, § 2589 Advertisement of home food service plans.

Any advertisement of a home food service plan which discloses item pricing information in accordance with the provisions of this subchapter shall set forth in a clear and conspicuous manner whether there are any service charges or other additional costs associated with the purchase of the home food service plan.

Del. Code tit. 6, § 2590 Enforcement and remedies.

(a) The Attorney General shall have the same authority in enforcing, remedying, and otherwise carrying out the provisions of this subchapter as is provided by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (b) If a court or tribunal of competent jurisdiction finds that any person has wilfully violated this subchapter, the Attorney General, upon petition to the court or tribunal, shall recover from the person, on behalf of the State, in addition to all costs, a civil penalty of not more than $10,000 per violation pursuant to § 2513 of this title. If the violation is against an elder person or person with a disability an additional civil penalty of not more than $10,000 per violation shall be recovered pursuant to § 2581 of this title. Each day that a wilful violation continues shall be considered a separate violation. (c) For the purpose of this subchapter, a wilful violation occurs when the party committing the violation knew or should have known that the party’s conduct was of the nature prohibited by this subchapter. (d) The remedies provided for in this subchapter are not exclusive, and shall be in addition to any other procedures, rights or remedies which exist with respect to any other provision of law.

Del. Code tit. 6, § 2591 Short title.

This subchapter may be cited as the “Delaware Charitable/Fraternal Solicitation Act of 1996.”

Del. Code tit. 6, § 2592 Purpose.

The purpose of this subchapter is to safeguard the public against fraudulent and misleading charitable/fraternal solicitations, thereby enhancing public confidence in legitimate charitable/fraternal organizations.

Del. Code tit. 6, § 2593 Definitions.

As used in this subchapter, unless the context otherwise requires: (1) “Charitable/fraternal organization” means any person who is or holds himself or herself out to be established: a. For any benevolent, educational, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic or philanthropic purpose; b. For the benefit of law-enforcement officers, firefighters or other persons who protect the public safety; or c. Any organization otherwise subject to § 501(c) of the Internal Revenue Code of 1986 [26 U.S.C. § 501(c)], as amended; (2) “Charitable/fraternal purpose” means: a. Any benevolent, educational, humane, scientific, patriotic, social welfare or advocacy, public health, environmental conservation, civic or philanthropic objective; or b. An objective to benefit law-enforcement officers, firefighters or other persons who protect the public safety; (3) “Charitable/fraternal solicitation” means any oral or written request, directly or indirectly, for money, credit, property, financial assistance or other thing of value on the plea or representation that such money, credit, property, financial assistance or other thing of value or any portion thereof, will be used for a charitable/fraternal purpose or the benefit of a charitable/fraternal organization. No actual contribution need be made in order for a charitable/fraternal solicitation to be deemed to have taken place. (4) “Contribution” means the grant, promise or pledge of money, credit, property, financial assistance or other thing of value in response to a charitable/fraternal solicitation. (5) “Person” means any individual, organization, corporation, government, or governmental subdivision or agency, statutory trust, business trust, estate, trust, partnership, unincorporated association, limited liability company, limited liability partnership, 2 or more of any of the foregoing having a joint or common interest, or any other legal or commercial entity. (6) “Professional solicitor” means a person who, for financial consideration, solicits contributions for a charitable/fraternal purpose or on behalf of a charitable/fraternal organization, either personally or through agents or employees employed or designated for that purpose. The term does not include a charitable/fraternal organization or an officer, director, employee, member or volunteer of a charitable/fraternal organization.

Del. Code tit. 6, § 2594 Records.

(a) Every professional solicitor shall keep accurate fiscal records regarding its charitable/fraternal solicitations in Delaware. (b) There shall be a written contract between a professional solicitor and a charitable/fraternal organization that clearly states the respective obligations of the professional solicitor and the charitable/fraternal organization and the compensation terms of the professional solicitor. (c) Every professional solicitor shall retain the records and the written contract required pursuant to this section for at least 3 years from the effective date of the termination of such contract. (d) Every professional solicitor shall review the requirements of this subchapter prior to executing each written contract with a charitable/fraternal organization.

Del. Code tit. 6, § 2595 Unlawful practices.

(a) The act, use or employment by any person of any deception, fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact with the intent that others rely upon such concealment, suppression or omission in connection with a charitable solicitation, whether or not any person has in fact been misled, deceived or damaged thereby. (b) Such acts or practices shall include, but are not limited to, any 1 of the following: (1) The failure of any person to identify himself or herself by name prior to making a charitable solicitation; (2) The failure of a person to identify the charitable/fraternal organization for which the charitable/fraternal solicitation is being made or the charitable/fraternal purpose of the solicitation prior to making the solicitation; (3) If the solicitation is made by a professional solicitor, the failure to disclose that the person soliciting the contribution is, or is employed by, a professional solicitor and the identity of the professional solicitor; (4) Upon request by the person being solicited, the failure of any person to disclose the amount/percentage of the contribution that will be turned over to the charitable/fraternal organization, the amount/percentage of the contribution to be used for the charitable/fraternal purposes for which it is being solicited or the amount/percentage to be retained by the professional solicitor. To the extent the amount/percentage of the contribution to be turned over to the charitable/fraternal organization is not known at the time of the solicitation, the person shall disclose a good faith estimate of the percentage/amount of the contribution to be turned over to the charitable/fraternal organization; (5) The use or reference to the term “police,” “law enforcement,” “trooper,” “rescue squad,” “firemen” or “firefighter” unless: a. The person making such representations is employed by a bona fide police, law enforcement, rescue squad or fire department and the person is authorized by such entity to engage in charitable solicitation; or b. Such entity has authorized the use or reference to such term in writing for the purpose of charitable/fraternal solicitation; (6) The representation that a percentage of the contribution will be used for a charitable/fraternal purpose if the person has reason to believe the contribution will not be used for a charitable/fraternal purpose; (7) The representation that another person, as defined by § 2593(5) of this title, endorses the solicitation unless such person has consented in writing to the use of the person’s name for the purpose of endorsing the solicitation; (8) The representation that the contribution is solicited on behalf of anyone other than the charitable/fraternal organization that authorized the solicitation in accordance with this subchapter; (9) The use of the name of any charitable/fraternal organization without the written consent of the charitable/fraternal organization; (10) The use of a name, symbol or statement so closely related or similar to that used by another charitable/fraternal organization or governmental agency that the use thereof would tend to confuse or mislead the public; (11) The failure to create and/or maintain the records and written contracts as required by § 2594 of this title with the intent to hinder the discovery of practices otherwise prohibited by this subchapter or having otherwise been in violation of this subsection; and (12) The failure to comply with § 2596 of this title on 3 separate occasions. (c) No charitable/fraternal organization or any officer, director, member, volunteer or employee of a charitable/fraternal organization shall be deemed in violation of this section for an unlawful practice committed by a professional solicitor unless the charitable/fraternal organization or such officer, director, member, volunteer or employee has actual prior knowledge of such unlawful practice or the charitable/fraternal organization or such officer, director, member, volunteer or employee had fraudulent intent in connection with the unlawful practice.

Del. Code tit. 6, § 2596 Time restriction.

No charitable/fraternal organization and/or professional solicitor shall engage in charitable/fraternal solicitation of any person after 9:00 p.m. or before 8:00 a.m., unless authorized by the person being solicited prior to the solicitation.

Del. Code tit. 6, § 2597 Enforcement and remedies.

(a) The Attorney General shall have the same authority in enforcing, remedying, and otherwise carrying out the provisions of this subchapter as is provided by Chapter 25 of Title 29 and by §§ 2511-2527 and 2531-2536 of this title. (b) Any violation of § 2595 of this title shall be deemed an unlawful practice in violation of § 2513 of this title and wilful violations of § 2595 of this title shall be punishable in accordance with § 2513 and/or § 2581 of this title. (c) The remedies and penalties provided for in this subchapter are not exclusive and shall be in addition to any other procedures, rights or remedies which exist with respect to any other provisions of law including but not limited to state and/or federal criminal prosecutions and/or actions brought by private parties.

Del. Code tit. 6, § 2598 Violation of order or injunction; penalty.

Repealed by 77 Del. Laws, c. 282, § 4, effective June 10, 2010.
Source: DE Code (Official Site)URL: https://delcode.delaware.gov/title6/c025/sc01/index.htmlFetched: 10/4/2026

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