HA2TOHS1FORHB162 • 2025

This Amendment clarifies that only subsection (a) of § 2599 is an unlawful practice under § 2513 of Title 6 and subchapter II of Chapter 25 of Title 6.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Ross Levin
Last action: 2025-06-17
Official status: Passed 6/17/25
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Amendment Clarifying Multilevel Marketing Rules

This amendment clarifies that only one specific part of a law is an illegal practice, allows contracts to be electronic in some cases, and limits product buybacks to items received within the last year.

What This Bill Does

States that only subsection (a) of section 2599 counts as an unlawful practice under Title 6 laws.
Allows required disclosures and contracts to be sent electronically if the main communication between parties is electronic.
Requires physical written documents for disclosures and contracts if the primary contact between parties happens in person.
Limits a company's duty to buy back products from participants who cancel their contract to only goods received within the last 12 months.

Who It Names or Affects

Multilevel distribution companies
Participants in marketing programs

Terms To Know

Unlawful practice: An action that breaks the law under specific state statutes.
Private right of action: A rule allowing individuals to sue for violations instead of relying on government enforcement.

Limits and Unknowns

The official text does not specify the exact date this law will take effect.
Other requirements in the Act are enforced by private lawsuits, but details about those specific rules are not included here.

Bill History

2025-06-17 Delaware General Assembly
Passed In House by Voice Vote

Official Summary Text

This Amendment clarifies that only subsection (a) of § 2599 is an unlawful practice under § 2513 of Title 6 and subchapter II of Chapter 25 of Title 6. The other requirements of the Act are enforced by private right of action.
This Amendment also provides that the disclosure required in subsection (a) and the contract in subsection (d) of § 2599 may be in written or electronic form. However, the transmission of the disclosure or contract must be in physical form if the primary contact between the parties is in person. If the primary form of communication between the parties is electronic, then the document and contract may be an electronic transmission.
This Amendment further provides that on cancellation of a contract for participation in a marketing program, the multilevel distribution company must agree to repurchase only goods received within the past 12 months.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Ross Levin

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 2

HOUSE SUBSTITUTE NO. 1

FOR

HOUSE BILL NO. 162

AMEND House Substitute No. 1 for House Bill No. 162 on line 24 by deleting “

written

” as it appears therein.

FURTHER AMEND House Substitute No. 1 for House Bill No. 162 by deleting line 49 in its entirety and inserting in lieu thereof the following:

“

(b) A violation of subsection (a) of this section shall be deemed an unlawful practice under § 2513 of Title 6 and a violation of subchapter II of Chapter 25 of Title 6.

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 162 on line 53 by deleting “

in writing

” as it appears therein.

FURTHER AMEND House Substitute No. 1 for House Bill No. 162 on lines 58 and 59 by deleting “

the goods in the same form of payment as originally purchased.

” as it appears therein and inserting in lieu thereof the following “

goods received by the participant in the previous 12 months using the same form of payment as used for the original purchase.

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 162 online 60 by deleting “

The

” at it appears therein as inserting in lieu thereof “

On cancellation, the

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 162 after line 60 and before line 61 by inserting the following:

“(

e) The “document” referenced in subsection (a) of this section and the “contract” referenced in subsection (d) of this section may be a written instrument or an electronic document or transmission, provided that:

(1) If the primary form of communication between the parties is in person, the document and contract must be delivered in a tangible written instrument.

(2) If the primary form of communication between the parties is electronic, then the document and contract may be an electronic transmission.

”.

FURTHER AMEND House Substitute No. 1 for House Bill No. 162 on line 61 by deleting “

(e)

” as it appears therein and by inserting the following:

“

(f)

”.

SYNOPSIS

This Amendment clarifies that only subsection (a) of § 2599 is an unlawful practice under § 2513 of Title 6 and subchapter II of Chapter 25 of Title 6. The other requirements of the Act are enforced by private right of action.

This Amendment also provides that the disclosure required in subsection (a) and the contract in subsection (d) of § 2599 may be in written or electronic form. However, the transmission of the disclosure or contract must be in physical form if the primary contact between the parties is in person. If the primary form of communication between the parties is electronic, then the document and contract may be an electronic transmission.

This Amendment further provides that on cancellation of a contract for participation in a marketing program, the multilevel distribution company must agree to repurchase only goods received within the past 12 months.