HB 96 — AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO CONSUMER CONTRACTS.

01/19/202204/01/2021 11:3911:50 AM (a) Any Aperson sellerwho thatengages sells,in leases,a ordeceptive offerspractice togoverned sellby orthis leasesubchapter anyshall merchandisebe liable to a consumer pursuantin to under a contract that contains an automaticamount renewalequal provisionto shalltreble disclose the termsamount of theactual automaticdamages renewalproved, provisionplus clearlyreasonable andattorney’s conspicuouslyfees. at the time the contract is entered into.

(b) Any A seller that sells or leases any merchandise to a consumer pursuant to under a contract that is renewed for a specified period of more than 1 month if the renewal causes the contract to be in effect more than 12 months after the day of the initiation of the contract, shall notify the consumer of each upcoming extension of the contract no less than 30 days and no more than 60 days before the cancellation deadline pursuant to under the automatic renewal provision.

Such notification shall disclose clearly and conspicuously:

The notification required under this subsection must clearly and conspicuously disclose all of the following:

(1) That unless the consumer cancels the contract, the contract will automatically renew;

renew.

(2) The date by which the consumer must cancel the contract to avoid automatic renewal;

renewal.

(3) The procedures the consumer must follow to cancel the contract;

and contract.

If the consumer entered into the contract online, the seller must provide an online procedure for a consumer to cancel the contract.

(4) How the consumer may obtain details of the automatic renewal provision, whether by contacting including any of the following:

a.

Contacting the seller at a specified telephone number or address, by providing address.

b.

Providing a copy of the provision, by providing provision.

c.

Providing access to the contract, or by contract.

d.

By any other appropriate method.

(c) A seller that fails to comply with the requirements of this section is in violation of this subchapter unless the seller demonstrates that:

all of the following:

(1) As part of the seller’s routine business practice, the seller has both:

does all of the following:

a.

Established and implemented written procedures to comply with this section;

and section.

b.

Enforces compliance with such procedures;

the procedures established under paragraph (c)(1)a.

of this section.

(2) Any failure to comply with this subchapter section is the result of error;

and error.

(3) As part of the seller’s routine business practice, where an error has caused the failure to comply with this subchapter, section, the unearned portion of the contract subject to the automatic renewal provision is refunded as of the date on which the seller is notified of the error or becomes aware of the error, whichever is earlier.

(d) This section does not apply to:

to any of the following:

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01/19/2022 11:39 AM (1) Matters subject to the jurisdiction of the Public Service Commission.

(2) Matters subject to the jurisdiction of the Insurance Commissioner of this State.

(3) Matters subject to the jurisdiction of the Federal Communications Commission.

(4) Leases subject to the Residential Landlord-Tenant Code, Chapters 51 through 59 of Title 25, or the Manufactured Homes and Manufactured Home Communities Act, Chapter 70 of Title 25.

Section 4.

Amend § 2735, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2735.

Remedies.

(a) Any person who engages in a deceptive practice governed by this subchapter shall be liable to a consumer in an amount equal to treble the amount of actual damages proved, plus reasonable attorneys’ fees.

(c) WithThe respectremedies and penalties under this subchapter are not exclusive and are in addition to any contractother containingprocedures, anrights, automaticor renewalremedies provisionwhich thatexist iswith renewedrespect into violationany other provisions of §law 2734including ofSubchapter thisII title,and suchSubchapter contractIII isof voidableChapter by25 theof consumer.this title.

(1)Section The3. consumer shall may void the automatic renewal contract using any method that would have been sufficient to cancel the contract prior to its renewal.

(2)Amend A§ consumer2736, whoTitle voids6 aof contractthe pursuantDelaware toCode thisby subsectionmaking shalldeletions isas notshown beby liablestrike forthrough anyand costs,insertions fees,as orshown expensesby associatedunderline withas thefollows: contract that accrue after the date on which the consumer voided the contract.

The§ seller2736. may retain a prorated fraction of any prepaid fees or costs based on the time since the renewal was executed and the time remaining in the renewal period.

The seller shall refund any remaining prepaid fees or costs to the consumer within 30 days.

(d) The remedies and penalties under this subchapter are not exclusive and are in addition to any other procedures, rights, or remedies which exist with respect to any other provisions of law including Subchapter II and Subchapter III of Chapter 25 of this title.

Section 5.

Amend § 2737, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2737.

(a)(1)In Beforeaddition bringing an action with respect to the automatic renewal of any contractremedies containinga anconsumer automaticmay renewalhave provisionat thatlaw isor renewed in violationequity, ofChapter §25 2734 of thisTitle title,29 theshall consumerapply mustto provideviolations the seller with notice of thethis LCsubchapter. :

(a) The Attorney General has the same authority to enforce and carry out this subchapter as under Chapter 25 of Title 29.

(b) A violation of this subchapter shall be deemed an unlawful practice under § 2513 of this title and a violation of Subchapter II of Chapter 25 of this title.

Section 4.

Amend Subchapter IV, Chapter 27, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 2737.

Residential waste collection;

unlawful practices.

(a) It is an unlawful practice for a person providing solid waste collection services for the collection of residential waste to charge or collect a fee in violation of this section.

(b) A person providing solid waste collection services to collect residential waste may not charge a fee in addition to the basic rate for the collection of waste, except for any of the following:

(1) Late payment or nonpayment of an amount due.

(2) Replacement of a lost or damaged container provided for the purpose of storage and collection of residential waste.

(3) Collection of waste that cannot be collected using the container provided by the solid waste collection service.

(c)(1) A contract to provide solid waste collection services to collect residential waste must prominently list the basic rate and each fee under subsection (b) of this section and the amount of or formula to calculate each fee.

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01/19/202204/01/2021 11:3911:50 AM 82(2) violationA andbill that includes a requestfee tounder cancelsubsection (b) of this section must itemize the extensionamount ofdue and identify each fee that is being charged in addition to the contract.basic rate.

The consumer shall send the notice by:

must send this notice by 1 of the following:

a.

Email;

Email.

b.

Mail;

or Mail.

c.

Any other method the business wants to offer.

offered by the seller.

(2) If An action may not be initiated under this chapter by the consumer against the seller for the cured violation of § 2734 of this title if, within 30 days of the consumer sending the notice, the seller:

notice required under paragraph (a)(1) of this section, the seller does all of the following:

a.

Cures the violation;

violation.

b.

Provides the consumer with a written statement that the alleged violations have violation has been cured and that no further violations of that kind shall occur;

and will occur and sends c.

Sends a copy of such this statement to the Director of Consumer Protection of the Department of Justice, Justice.

then no action shall be initiated under this chapter by the consumer against the seller for the cured violation of § 2734 of this title.

NothingA inperson thisproviding sectionsolid shallwaste precludecollection precludesservices investigationto orcollect enforcementresidential actionwaste bymust theprovide Attorneyno Generalless forthan violations90 days notice before any of thisthe chapter.following take effect:

1.

The amount of a fee under paragraph (c)(1) of this section is increased.

2.

A new fee under subsection (b) of this section is added.

3.

The amount of the basic rate is increased.

4.

The amount of a fee allowed under paragraph (d)(2) of this section is increased.

TheIf Attorneyan Generalindividual hasreceives thenotice same authority to enforce and carry out this subchapter as under Chapterparagraph 25(c)(3)a. of Title 29.

(b)of Inthis additionsection, tothe anyindividual remedies a consumer may haveterminate at law or innot equity,renew athe violationcontract, ofwith thisno subchapteradditional shallfee beor deemedpenalty, anuntil unlawfulthe practiceeffective underdate § 2513 of thisthe titlechange. and a violation of subchapter II of Chapter 25 of this title.

A(d)(1) violationThis ofsection thisapplies subchapterto shallcontracts becreated, deemedrenewed, anmodified, unlawfulaltered, practiceamended, underor §reissued 2513after of[the thiseffective titledate and a violation of Subchapter II of Chapter 25 of this title.”Act]. (c) The automatic renewal provisions of this subchapter shall become effective take effect on January 1, 2022.

FURTHER(2) AMENDSubsection House(b) Substituteof No.this section does not prohibit a fee that was in a contract on [the enactment date of this Act], until the contract is renewed, modified, altered, amended, or reissued under paragraph (d)(1) of this section.

Section 5.

This Act takes effect 6 months after its enactment into law.

SYNOPSIS House Bill No.

96 prohibits multiple service charges for residential trash collection service except if the charge is for any of the following:

1.

Late or nonpayment of an amount due.

2.

Replacement of a container.

3.

Collecting waste that cannot be collected using the container.

House Substitute No.

96 ondiffers linefrom 37House byBill deletingNo. “§ 2737.” and inserting in lieu thereof “§ 2734A.”.

FURTHER96 AMENDas Housefollows: Substitute No.

11. for House Bill No.

96It onclarifies linethat 47a bybill deletingmay “prominently”include andmultiple insertingcharges if the charges in lieuaddition thereofto “clearlybasic andrate conspicuously.”.if each additional charge is in compliance with § 2737 of Title 6.

FURTHER2. AMEND House Substitute No.

1Requires forthat Housea Billcontract No.list the basic rate and each additional charge and the amount of the charge.

963. by deleting line 57 in its entirety and inserting in lieu thereof the following:

Requires that all charges in a bill that includes a fee allowed under § 2737 of Title 6 be itemized.

4.

Requires 90 days notice before a new fee is added, the amount of a fee increases, or the base rate increases and allows a consumer to terminate or not renew the contract with no penalty or additional fee.

5.

Clarifies the applicability of this Act.

This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

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If a consumer receives notice under paragraph (c)(3)a.

of this section, the consumer may terminate or”.

SYNOPSIS Senate Substitute No.

1 for Senate Bill No.

93 was enacted on August 4, 2021, revising the Delaware Code sections in House Substitute No.

1 for House Bill No.

96.

This Amendment revises HS 1 for HB 96 to conform to the current version of the Delaware Code by redesignating sections and using newly created defined terminology.

This Amendment also makes technical corrections to conform existing law, including provisions enacted by SS 1 for SB 93, to the standards of the Delaware Legislative Drafting Manual.

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