Delaware – Delaware’s House of Representatives has greenlit a bill to protect citizens from deceptive multi-level marketing ventures, demanding accountability from companies pushing questionable business models. Substitute 1 for House Bill 162 requires sellers to disclose verified earnings, contact information, and return policies, aiming to curb schemes that prey on hopeful entrepreneurs. The measure now moves to the Senate for review. Rep. Melanie Ross Levin stated the legislation safeguards hardworking Delawareans, particularly those lured by false promises of quick wealth.
The bill mandates a three-month cancellation period and requires sellers to buy back 90% of unsold inventory, giving participants an exit strategy. A Federal Trade Commission study shows 99% of these venture participants lose money, highlighting the urgency of reform. Sen. Stephanie Hansen stated the law promotes honesty, ensuring residents aren’t misled by inflated income claims or hidden fees. By enforcing clear disclosures, Delaware aims to foster fair business practices while protecting economic freedom. The bill reflects a commitment to shielding vulnerable residents, ensuring they can pursue opportunities without falling victim to financial traps. This move strengthens trust in Delaware’s economy, prioritizing personal responsibility and local prosperity.
