Chapter 25

§ 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. 18 Del. Laws, c. 661 ; 20 Del. Laws, c. 70 ; 20 Del. Laws, c. 571 ; 26 Del. Laws, c. 207 ; Code 1915, §  3580; Code 1935, §  4074; 6 Del. C. 1953, §  2501; § 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. 18 Del. Laws, c. 661 ; 20 Del. Laws, c. 70 ; 20 Del. Laws, c. 571 ; 26 Del. Laws, c. 207 ; Code 1915, §  3580; Code 1935, §  4074; 6 Del. C. 1953, §  2502; § 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. 18 Del. Laws, c. 661 ; 20 Del. Laws, c. 70 ; 20 Del. Laws, c. 571 ; 26 Del. Laws, c. 207 ; Code 1915, §  3580; Code 1935, §  4074; 6 Del. C. 1953, §  2503; § 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. Code 1915, §  2498A; 29 Del. Laws, c. 213 ; Code 1935, §  3124; 6 Del. C. 1953, §  2504; § 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. 6 Del. C. 1953, §  2505; 56 Del. Laws, c. 413 ; 70 Del. Laws, c. 186, §  1 ; § 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. 71 Del. Laws, c. 470, §  15 ; § 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. 72 Del. Laws, c. 472, §  4 ; § 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. 76 Del. Laws, c. 297, §  1 ; § 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. 78 Del. Laws, c. 68, §  1 ; § 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. 78 Del. Laws, c. 197, §  1 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 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. 6 Del. C. 1953, §  2511; 55 Del. Laws, c. 46 ; 71 Del. Laws, c. 420, §§  2, 3 ; 71 Del. Laws, c. 470, §  11 ; 73 Del. Laws, c. 329, §  35 ; 83 Del. Laws, c. 85, § 1 ; § 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. 6 Del. C. 1953, §  2512; 55 Del. Laws, c. 46. ; § 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. 6 Del. C. 1953, §  2513; 55 Del. Laws, c. 46 ; 69 Del. Laws, c. 203, §  23 ; 71 Del. Laws, c. 420, §  1 ; 71 Del. Laws, c. 470, §§  12, 13 ; 83 Del. Laws, c. 85, § 2 ; 83 Del. Laws, c. 178, § 5 ; 85 Del. Laws, c. 362, § 1 ; § 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. 6 Del. C. 1953, §  2514; 55 Del. Laws, c. 46 ; 70 Del. Laws, c. 186, §  1 ; 71 Del. Laws, c. 470, §§  7-10 ; § 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. 6 Del. C. 1953, §  2515; 55 Del. Laws, c. 46. ; § 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. 6 Del. C. 1953, §  2516; 55 Del. Laws, c. 46. ; § 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. 6 Del. C. 1953, §  2517; 55 Del. Laws, c. 46 ; 70 Del. Laws, c. 186, §  1 ; 71 Del. Laws, c. 470, §  14 ; § 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. 6 Del. C. 1953, §  2518; 55 Del. Laws, c. 46 ; 71 Del. Laws, c. 470, §  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. 6 Del. C. 1953, §  2519; 55 Del. Laws, c. 46 ; 71 Del. Laws, c. 470, §  4 ; § 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. 6 Del. C. 1953, §  2520; 55 Del. Laws, c. 46 ; 71 Del. Laws, c. 470, §  5 ; § 2521 Cease and desist agreements. Repealed by 77 Del. Laws, c. 282, § 3, effective June 10, 2010. § 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. 6 Del. C. 1953, §  2522; 55 Del. Laws, c. 46 ; 70 Del. Laws, c. 186, §  1 ; 71 Del. Laws, c. 470, §  3 ; 77 Del. Laws, c. 282, §  1 ; 78 Del. Laws, c. 219, §  1 ; 84 Del. Laws, c. 444, § 1 ; § 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. 6 Del. C. 1953, §  2523; 55 Del. Laws, c. 46. ; § 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. 6 Del. C. 1953, §  2524; 55 Del. Laws, c. 46 ; 70 Del. Laws, c. 186, §  1 ; § 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. 6 Del. C. 1953, §  2525; 55 Del. Laws, c. 46 ; 74 Del. Laws, c. 113, §§  1, 2 ; § 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. 6 Del. C. 1953, §  2526; 55 Del. Laws, c. 46. ; § 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. 64 Del. Laws, c. 303, §  1 ; 69 Del. Laws, c. 151, §  2 ; 69 Del. Laws, c. 203, §§  13, 17-21 ; 77 Del. Laws, c. 282, §  1 ; 78 Del. Laws, c. 219, §§  2-4 ; 79 Del. Laws, c. 292, §  29 ; 80 Del. Laws, c. 79, §  114(a) ; 81 Del. Laws, c. 28, § 1 ; 81 Del. Laws, c. 28, § 5 ; 83 Del. Laws, c. 325, § 110 ; 83 Del. Laws, c. 391, § 1 ; § 2528 Price protections during the COVID-19 recovery period [Repealed]. 82 Del. Laws, c. 267, § 2 ; repealed by 82 Del. Laws, c. 267, § 4, effective May 1, 2022. ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 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. 6 Del. C. 1953, §  2531; 55 Del. Laws, c. 36 ; 70 Del. Laws, c. 186, §  1 ; 73 Del. Laws, c. 329, §  36 ; § 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. 6 Del. C. 1953, §  2532; 55 Del. Laws, c. 36 ; 70 Del. Laws, c. 186, §  1 ; § 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. 6 Del. C. 1953, §  2533; 55 Del. Laws, c. 36 ; 57 Del. Laws, c. 499 ; 69 Del. Laws, c. 203, §  22 ; 70 Del. Laws, c. 186, §  1 ; 71 Del. Laws, c. 470, §  16 ; § 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. 6 Del. C. 1953, §  2534; 55 Del. Laws, c. 36 ; 77 Del. Laws, c. 282, §  19 ; § 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. 6 Del. C. 1953, §  2535; 55 Del. Laws, c. 36. ; § 2536 Short title. This subchapter may be cited as the “Uniform Deceptive Trade Practices Act.” 6 Del. C. 1953, §  2536; 55 Del. Laws, c. 36. ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 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. 6 Del. C. 1953, §  2541; 57 Del. Laws, c. 390. ; § 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. 6 Del. C. 1953, §  2542; 57 Del. Laws, c. 390 ; 70 Del. Laws, c. 186, §  1 ; § 2543 Penalty. Whoever violates § 2542 of this title shall be fined not less than $100 nor more than $500 for each offense. 6 Del. C. 1953, §  2543; 57 Del. Laws, c. 390. ; § 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. 6 Del. C. 1953, §  2544; 57 Del. Laws, c. 390 ; 70 Del. Laws, c. 186, §  1 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 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. 6 Del. C. 1953, §  2551; 57 Del. Laws, c. 693 ; 62 Del. Laws, c. 352, §§  1-3 ; § 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. 6 Del. C. 1953, §  2552; 57 Del. Laws, c. 693 ; 62 Del. Laws, c. 352, §  4 ; § 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. 6 Del. C. 1953, §  2553; 57 Del. Laws, c. 693. ; § 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. 79 Del. Laws, c. 39, §  1 ; § 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. 6 Del. C. 1953, §  2554; 57 Del. Laws, c. 693 ; 79 Del. Laws, c. 39, §  1 ; § 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. 6 Del. C. 1953, §  2555; 57 Del. Laws, c. 693 ; 79 Del. Laws, c. 39, §  1 ; § 2557 Short title. This chapter may be cited as the “Delaware Franchise Security Law.” 6 Del. C. 1953, §  2556; 57 Del. Laws, c. 693 ; 79 Del. Laws, c. 39, §  1 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 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. 6 Del. C. 1953, §  2561; 59 Del. Laws, c. 86, §  1 ; 70 Del. Laws, c. 186, §  1 ; § 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. 6 Del. C. 1953, §  2562; 59 Del. Laws, c. 86, §  1 ; § 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. 6 Del. C. 1953, §  2563; 59 Del. Laws, c. 86, §  1 ; § 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. 6 Del. C. 1953, §  2564; 59 Del. Laws, c. 86, §  1 ; Delaware General Assembly Judicial Executive Contact Twitter Help function submitSearch() { if (!window.location.origin) { window.location.origin = window.location.protocol + "//" + window.location.hostname + (window.location.port ? ':' + window.location.port : ''); } keyword = document.getElementById('srch-term').value; window.location.href = "/Search?query=" + keyword; } document.getElementById('srch-term').onkeyup = function (e) { if (e.keyCode == 13) { submitSearch(); } } § 2570 Short title. This subchapter may be cited as the “Buyer Property Protection Act.” 69 Del. Laws, c. 86, §  2 ; § 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. 69 Del. Laws, c. 86, §  2 ; § 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. 69 Del. Laws, c. 86, §  2 ; § 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. 75 Del. Laws, c. 36