Delaware General Assembly

House Judiciary 6/17/08

The General Assembly has ended, the current status is the final status.

6/17/08

Valihura

Sen. Sokola

Reps. Hudson, Maier

AN ACT TO AMEND TITLE 6, TITLE 25 AND TITLE 29 OF THE DELAWARE CODE RELATING TO CONSUMER PROTECTION.

This Bill presents extensive revisions to Chapter 25 of Title 6 of the Delaware Code, and to Chapter 25 of Title 29 of the Delaware Code, pertaining to consumer protection, in order to bring greater clarity and consistency to the statute and to strengthen and increase the enforcement authority of the Department of Justice. Specifically, the Bill adds new administrative powers to give the Director of the Consumer Protection Unit of the Department of Justice similar authority to what is provided to the Securities Commissioner in Chapter 73 of Title 6 of the Delaware Code. Several sections contained in Chapter 25 of Title 29 of the Delaware Code have been revised and transferred to Chapter 25 of Title 6 of the Delaware Code, so that the consumer protection statutes are all in one location in the Code. Section 1 contains a new Subchapter I that has been amended to place general provisions pertaining to purpose, definitions, private causes of action and remedies, courts of competent jurisdiction, defenses, and a statute of limitations at the beginning of the Chapter. Previously, Subchapter I was a collection of miscellaneous provisions. Section 2 contains a new Subchapter II that clarifies the rulemaking authority of the Director of the Consumer Protection Unit and adds new administrative powers. The Director shall have the authority to issue cease and desist orders for any violation of the Chapter. For consumer fraud and deceptive trade practice violations, the Director is authorized to initiate an administrative proceeding in which civil penalties up to $5,000 per violation are authorized. Section 2 also authorizes the Attorney General to appoint a hearing officer, who shall be a Deputy Attorney General not assigned to the Consumer Protection Unit, to adjudicate such proceedings. Additionally, in court proceedings where a violation has been shown by the Consumer Protection Unit, it shall be entitled to attorney’s fees. Section 3 contains a new Subchapter III that prohibits consumer fraud and unfair or deceptive trade practices. These Sections closely match the language previously contained in former §§ 2513 and 2532. However, the new consumer fraud Section (§ 2522) contains two new provisions, which (1) make a violation of the Federal Trade Commission Act or the Truth In Lending Act a per se consumer fraud violation, and (2) make a failure to disclose the absence of a required license a consumer fraud violation. The new deceptive trade practice Section (§ 2523) adds the term “unfair” to prohibit unfair as well as deceptive trade practices. Section 4 repeals Subchapter XI of Title 6 of the Delaware Code, which consists of one (1) section pertaining to enforcement. The substance of this provision has been moved to Subchapter II, which contains enforcement-related sections. Section 5 repeals the Sections in Chapter 25 of Title 29 of the Delaware Code pertaining to consumer protection, so that the consumer protection statutes are all located in Title 6 of the Delaware Code. Sections 6 through 25 amend various references throughout Title 6 of the Delaware Code (as well as one change in Title 25 of the Delaware Code) to the old consumer protection statutory provisions to update those references for consistency with the new Section numbers. All Sections of this Act become effective upon enactment.

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