This week, Delaware Governor Jack Markell (D) signed HB 49 into law. This new law mandates door-to-door sellers prominently display a government-issued salesperson identification card when making door-to-door solicitations. Door-to-door sales are permitted to be solicited between 9:00 a.m. and 8:00 p.m.  This law will become effective in 120 days.

Who Must Comply:

Sellers who personally solicit a sale at the residence of the consumer and make contact with the consumer are required to prominently display a government-issued salesperson identification card. Door-to-door solicitations are permitted to take place between 9:00 a.m. and 8:00 p.m.

A door-to-door sale includes the sale, lease or rental of consumer goods or services, regardless of the price, for which the seller personally solicits the sale.

Exemptions:

DSA staff and DSA member executives lobbied extensively against the passage of this legislation. We were successful in securing an exemption for sellers who simply leave written solicitation or advertising materials at the consumer’s house and do not speak with the consumer.  In that situation, sellers are not required to display an ID card.

Similarly, if the seller is invited to the consumer’s residence to solicit the consumer or the consumer’s invited guests, the seller is not required to display an ID card.  Accordingly, party plan sales are not subject to this statute.  The law also does not apply to sales that are solicited via telephone, mail, email or internet.

Sellers working on behalf of nonprofit organizations, public utilities and cable television systems are exempt from the law.

Penalties:

If a door-to-door seller fails to display an ID card or conducts door-to-door solicitations between 8:00 p.m. and 9:00 a.m., the fine for the first offense is $75-$150. Each subsequent offense would subject the seller to a fine of $100-$250.

The Delaware Department of Finance is responsible for administering the registration program, including the determination of any fees related to obtaining or renewing the ID card.  The law does not specify when the Department must promulgate rules outlining the registration procedure and any fees associated with it. 

While the bill passed the Delaware House and Senate with bipartisan support, DSA plans to seek a direct seller exemption in upcoming legislative sessions.