Collaboration to Continue as Delaware Lawmakers and the Direct Selling Community Work Together on Stronger Consumer Protection Legislation

(WASHINGTON, D.C.) — Direct Selling Association (DSA) today acknowledged the June 30th close of Delaware's 2026 legislative session without House Bill 162 advancing from committee.

Over the past 15 months, DSA led a broad coalition of member companies, industry partners, and independent distributors in working with Delaware lawmakers to strengthen HB 162 while identifying issues that remained unresolved. That engagement resulted in important improvements before the bill reached the Delaware Senate and created an opportunity to work together during the next legislative session on new legislation that more effectively protects consumers.

“This process shows what can happen when policymakers and industry stay engaged and work through difficult issues together,” said Dave Grimaldi, President and CEO of the Direct Selling Association. “We appreciate the leadership of Representative Melanie Ross Levin and Senator Stephanie Hansen and their willingness to listen, ask thoughtful questions, and carefully consider the issues we raised. Although HB 162 did not advance this session, months of engagement positions us to begin the next legislative session with a shared commitment to legislation that better protects consumers, clearly distinguishes ethical direct selling from unlawful pyramid schemes, and reflects how our channel actually operates.”

“Protecting consumers is fundamental to ethical direct selling,” said Kim Drabik, Vice President of Corporate Affairs at Plexus Worldwide and Chair of the DSA Government Relations Committee. “One of the most meaningful outcomes of this process was Delaware lawmakers' recognition that DSA member companies voluntarily operate under the DSA Code of Ethics and the industry's self-regulatory framework, including the Direct Selling Self-Regulatory Council. Those voluntary standards provide policymakers with a strong starting point for developing legislation that recognizes ethical companies while focusing enforcement where it belongs: on deceptive practices and unlawful pyramid schemes.”

That understanding was shaped by voices from across the direct selling community. DSA member companies Amway, Plexus Worldwide, and Mary Kay Inc. worked alongside executives, independent distributors, and others from across the channel to share practical, real-world perspectives with lawmakers. Their engagement resulted in amendments to the bill's enforcement framework, a modernization of its disclosure requirements to reflect today's electronic business environment, and improvements on several operational provisions before the legislation reached the Delaware Senate.

Even after those amendments, significant concerns remained. Most notably, HB 162 continued to permit compensation tied to recruitment rather than retail product sales. DSA member companies voluntarily adhere to the DSA Code of Ethics, which requires compensation to be based on product and service sales while prohibiting compensation for recruitment. During committee consideration, Representative Melanie Ross Levin and Senator Stephanie Hansen acknowledged that DSA member companies voluntarily adhere to the Code of Ethics, an important distinction that can help inform future consumer protection legislation.

DSA looks forward to working with Representative Melanie Ross Levin, Senator Stephanie Hansen, and members of the Delaware General Assembly during the 2026–2027 legislative session to develop legislation that protects consumers, targets deceptive practices, clearly distinguishes ethical direct selling from unlawful pyramid schemes, and builds upon the voluntary standards that already guide DSA member companies.

About the Direct Selling Association (DSA)

We are the collective voice of the visionaries, entrepreneurs, trailblazing women, and innovators comprising the most powerful, people-driven distribution channel in the world. Our mission is to advance a policy and regulatory environment that embraces innovation, protects consumers, and empowers entrepreneurs across America and the globe to build businesses on their own terms.