The Delaware House passed HB 162 by a vote of 27-11. The legislation, which the DSA described as “an unprecedented threat to the direct selling business model,” has led to intense pushback from the direct selling community. The DSA, in particular, delivered what it called a “forceful, well-articulated argument against this dangerous and precedent-setting legislation.”
The bill proposes the following provisions:
- Disclosure mandates not seen anywhere else in the US
- A three-month right of rescission, which is a significant departure from the standard three-day rule
- A no time limit 90% inventory buyback requirement
- Application for all companies, regardless of size, structure or compliance history
- A failure to recognize the industry’s existing self-regulation efforts and organization
In the wake of the bill’s approval, the DSA is now organizing a direct seller-led response in the state of Delaware so that entrepreneurs and distributors can share their firsthand stories with legislators.
“This legislation directly impacts their freedom to earn, their right to choose and their ability to build flexible, independent businesses,” the DSA wrote in a statement. “Their voices are powerful—and they are the ones lawmakers need to hear next.”
The DSA is now asking company leaders and independent distributors to lend their voices and stories to a movement to stop the bill from making further progress.
“The bill now, in a timeline that is unclear, will go to the Delaware state Senate,” said Dave Grimaldi, DSA CEO. “And DSA is going to be active–more active than ever.”
