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

The candidate explanation includes details that are not fully supported or directly stated in the provided official bill summary and text. The enforcement mechanisms and penalties for non-compliance were not specified in the official material.

Clarifying Unlawful Practices and Contract Requirements

This amendment clarifies that only subsection (a) of § 2599 is an unlawful practice under certain sections, allows for electronic or written forms of disclosure and contracts based on communication methods, and limits repurchase agreements to goods received within the past year.

What This Bill Does

Clarifies that only part (a) of a specific section is considered illegal under other laws.
Allows companies to use either paper or digital documents for disclosures and contracts depending on how they communicate with customers.
Requires physical copies if people mainly talk face-to-face, but allows electronic versions if communication is mostly online.
Limits the company's obligation to buy back products only to those received in the last 12 months when a contract ends.

Who It Names or Affects

Companies involved in multilevel marketing and distribution programs
Customers participating in these programs

Terms To Know

Unlawful practice: An action that breaks specific laws or regulations.
Private right of action: The ability for individuals to sue in court over certain issues.

Limits and Unknowns

Does not specify how the changes will be enforced.
Does not provide details on penalties for non-compliance with these new rules.

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.