By SSN Staff –
The Direct Selling Association (DSA) is urging immediate action against Delaware House Bill 162, warning the legislation poses an “existential threat” to the industry’s business model.
The bill, which received a hearing Tuesday before the House Economic Development/Banking/Insurance & Commerce Committee, would impose regulations the DSA calls “impractical, unnecessary, and unlike any imposed elsewhere in the United States.”
Key provisions include a mandatory 48-hour waiting period before program participation, extensive disclosure requirements and a three-month rescission right for participants.
“These provisions are unworkable,” the DSA stated in an advisory sent Friday to member companies. The association expressed concern the Delaware measure could encourage similar legislation in other states if enacted.
The DSA has activated an advocacy campaign, requesting all direct selling companies coordinate with their compliance, legal and government relations teams to oppose the measure. The organization characterized the bill’s waiting period and disclosure mandates as potentially setting a “damaging precedent” for the direct selling industry nationwide.
“This is one of the most serious threats our channel has faced,” the DSA warned, emphasizing that stopping the Delaware legislation is critical to preventing copycat bills elsewhere.
