HB 299 — AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO PROHIBITED TRADE PRACTICES FORBIDDING DISCRIMINATION AGAINST CASH PAYMENTS BY CONSUMERS.

(a) It shall be an unlawful practice for a retail store to refuse to accept cash from any consumer as payment for consumer goods or services.

(b) No retail store shall discriminate against a consumer paying with cash by treating that consumer differently in any manner from a consumer paying by a non-cash method, including any of the following:

(1) Charging a higher price to consumers who pay with cash, but it may charge less to consumers who pay with cash.

(2) Requiring consumers paying with cash to use automated machines that convert cash into prepaid cards.

(3) Having fewer checkout locations for consumers paying with cash than for consumers paying using non- cash methods.

§ 2504G.

Enforcement and Penalties.

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

(b) The Division of Consumer Protection is authorized to interpret, implement, and enforce this chapter, including to issue regulations.

Any regulations the Division of Consumer Protection promulgates shall have the force and effect of law and may be relied on to determine rights and responsibilities under this chapter.

(c) A company whose retail store violates this chapter is liable for civil penalties in amounts adjusted for the number of violations and its annual gross sales.

(1) For a first violation, a company is liable for civil penalties up to $1,000.

(2) For a second violation, a company is liable for civil penalties up to $1,500.

(3) For third and subsequent violations, a company is liable for civil penalties up to $2,500.

§ 2505G.

Private Right of Action.

(a) In addition to the authority vested in the Division of Consumer Protection to enforce the provisions of this chapter under Title 29, § 2520 of the Delaware Code, a consumer who is denied the opportunity to pay in cash is entitled to bring an action in a court of appropriate jurisdiction against the company for the following:

(1) All damages, including consequential damages, caused by a company’s second or subsequent violation.

(2) Subsequent violations entitle an aggrieved consumer to damages as follows:

UponA request,second providesviolation, eachdouble customer with a receipt indicating the amountdamages ofcaused cashby such consumer deposited onto the prepaidviolation. card b.

Doesb. not charge any fee or requires a deposit amount greater than $5.00.

c.A third or subsequent violation, triple the damages caused by the violation.

Provides a prepaid card that is not subject to an expiration date, and has no limit on the number of transactions that may be completed with such card.” FURTHER AMEND House Bill No.

299 by deleting lines 32 and 33 in their entirety.

FURTHER AMEND House Bill No.

299 by deleting lines 45 through 55 in their entirety and redesignating accordingly.

SYNOPSIS This amendment exempts from the definition of “retail store”, transactions for the rental of consumer goods, services, or accommodations for which posting collateral or security is typically required.

This amendment also exempts transactions at any sporting or entertainment event, including music festivals.

This Amendment also provides an exception to the prohibition against requiring consumer paying with cash to use automated machines that convert cash into prepaid cards.

That exception is for food stores and retail establishments that provide a device on premises that converts cash into a prepaid card so long as the device meets certain requirements.

This amendment also removes the provision creating a private right of action since the Division of Consumer Protection is authorized to interpret, implement and enforce the chapter.

Finally, this amendment removes the provision prohibiting retail stores from having fewer checkout locations for consumers paying with cash than for consumers using non-cash methods.

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(c) Private rights of action claims must be filed no later than three years after the violation.

§ 2506G.

Miscellaneous.

This chapter shall be liberally construed to effectuate its purpose.

If a court declares any provision or application of this chapter to be illegal, the remaining provisions shall remain in effect.

Courts are hereby authorized to reform the provisions of this chapter in order to preserve its maximum lawful effect.

§ 2507G.

Effective Date.

This Act takes effect upon promulgation of regulations adopted under this chapter, or 6 months following enactment, whichever occurs first.

SYNOPSIS This Act prohibits the seller of consumer goods or services from refusing to accept cash payment, except in limited circumstances.

Sales covered by this Act are those made at a retail store through an in-person transaction.

The Act does not apply to sales of goods or services by electric or gas utilities, telephone, mail or internet sales, or for services provided at parking lots or garages.

It creates graduated civil penalties for violations and provides consumers a private right of action to recover double damages, including consequential damages, for a second violation of the law and triple damages for subsequent violations.

The Division of Consumer Protection has authority to enforce the law.

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