Delaware Code Title 6 Sec. 2734 – Contracts with automatic renewal provisions
(a) Any seller that sells, leases, or offers to sell or lease any merchandise to a consumer pursuant to a contract that contains an automatic renewal provision shall disclose the terms of the automatic renewal provision clearly and conspicuously at the time the contract is entered into.
Terms Used In Delaware Code Title 6 Sec. 2734
- Automatic renewal provision: means a provision under which a contract is renewed for a specified period of more than 1 month if the renewal causes the contract to be in effect more than 12 months after the day of the initiation of the contract and such renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the contract. See Delaware Code Title 6 Sec. 2731
- Clearly and conspicuously: means either that printed disclosures must be in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, or by way of a recorded audio disclosure, in a manner that clearly calls attention to the language. See Delaware Code Title 6 Sec. 2731
- Consumer: means an individual who purchases or leases merchandise primarily for personal, family or household purposes. See Delaware Code Title 6 Sec. 2731
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means any contract for the sale of merchandise or any lease. See Delaware Code Title 6 Sec. 2731
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Merchandise: means any objects, wares, goods, commodities, intangibles, real estate or services, other than insurance. See Delaware Code Title 6 Sec. 2731
- Month: means a calendar month, unless otherwise expressed. See Delaware Code Title 1 Sec. 302
- Seller: means any person engaged in commerce that sells, leases, or offers to sell or lease any merchandise to a consumer. See Delaware Code Title 6 Sec. 2731
- State: means the District of Columbia or the Commonwealth of Puerto Rico or any state, territory, possession, or other jurisdiction of the United States other than the State of Delaware. See Delaware Code Title 6 Sec. 17-101
(b) Any seller that sells or leases any merchandise to a consumer pursuant to a contract that is renewed for a specified period of more than 1 month if the renewal causes the contract to be in effect more than 12 months after the day of the initiation of the contract, shall notify the consumer of each upcoming extension of the contract no less than 30 days and no more than 60 days before the cancellation deadline pursuant to the automatic renewal provision. Such notification shall disclose clearly and conspicuously:
(1) That unless the consumer cancels the contract, the contract will automatically renew;
(2) The date by which the consumer must cancel the contract to avoid automatic renewal;
(3) The procedures the consumer must follow to cancel the contract; and
(4) How the consumer may obtain details of the automatic renewal provision, whether by contacting the seller at a specified telephone number or address, by providing a copy of the provision, by providing access to the contract, or by any other appropriate method.
(c) A seller that fails to comply with the requirements of this section is in violation of this subchapter unless the seller demonstrates that:
(1) As part of the seller’s routine business practice, the seller has both:
a. Established and implemented written procedures to comply with this section; and
b. Enforces compliance with such procedures;
(2) Any failure to comply with this subchapter is the result of error; and
(3) As part of the seller’s routine business practice, where an error has caused the failure to comply with this subchapter, the unearned portion of the contract subject to the automatic renewal provision is refunded as of the date on which the seller is notified of the error or becomes aware of the error, whichever is earlier.
(d) This section does not apply to:
(1) Matters subject to the jurisdiction of the Public Service Commission.
(2) Matters subject to the jurisdiction of the Insurance Commissioner of this State.
(3) Matters subject to the jurisdiction of the Federal Communications Commission.
(4) Leases subject to the Residential Landlord-Tenant Code, Chapters 51 through 59 of Title 25, or the Manufactured Homes and Manufactured Home Communities Act, Chapter 70 of Title 25.