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Bill would restore post‑sale consumer protections narrowed by Delaware Supreme Court
Summary
SB 297 would clarify that Delaware’s Consumer Fraud Act covers unfair or deceptive acts occurring before, during or after a sale, reversing a recent court reading that excluded many post‑transaction harms; DOJ and consumer advocates urged passage, citing landlord abuses and warranty failures.
Senator Kansy sponsored SB 297, a Department of Justice–backed bill to amend Delaware’s Consumer Fraud Act so that the statutory phrase “in connection with” covers unfair and deceptive acts before, during and after a sale, lease or advertisement. The measure is intended to respond to a recent Delaware Supreme Court ruling cited in testimony as the Blue Beach case, which committee witnesses said narrowed the statute’s reach.
Why it matters: The sponsor and witnesses said the court decision left many common harms outside the law, including threatening landlord communications, failure to complete promised repairs, abusive debt‑collection tactics, warranty denials and unauthorized billing. ‘‘This change is about including bad conduct,’’ John Whitelaw, advocacy director at Community Legal Aid, told the committee, urging lawmakers to give the Attorney General’s office the authority to pursue post‑transaction misconduct.
DOJ testimony and timing: Owen Levicon, director of the Fraud and Consumer Protection Division at the Delaware Department of Justice, told the committee that the Consumer Fraud Act carries a five‑year statute of limitations and that the five‑year clock runs from the date of the deceptive conduct. ‘‘Because the statute of limitations would run from when the deceptive or unfair conduct took place,’’ Levicon said, the bill would allow enforcement within that window for post‑transaction misconduct.
Support from consumer advocates: Carolyn Carter, a senior attorney at the National Consumer Law Center, said post‑sale practices are among the ‘‘worst abuses’’ consumers face and noted that most states apply unfair‑and‑deceptive‑practice laws to post‑sale conduct; she said Delaware currently stands alone in excluding those acts under settled law. Community Legal Aid and the Manufactured Homeowners Association also testified in favor of the change.
What the committee did: The committee heard testimony and questions but did not take a final vote on SB 297 at this meeting. Committee members asked technical questions about timing and enforcement; DOJ and advocates recommended the narrow statutory fix described in the bill.
What comes next: The bill remains before the Senate Banking, Business Insurance and Technology Committee; the sponsor and proponents said the amendment would give state enforcement authorities the tools to pursue post‑transaction harms that, under the court’s recent reading, may now fall outside the Consumer Fraud Act.
