2019 Delaware Code
Title 6 - Commerce and Trade
Chapter 25A. Telemarketing Registration and Fraud Prevention
§ 2505A Exempt practices.

Universal Citation: 6 DE Code § 2505A (2019)

This chapter shall not apply to the following business practices by a seller, telemarketer or a telemarketing business except as otherwise provided in this section:

(1) Solicitations in which the sale of merchandise is not completed and payment or authorization for payment is not required until after a face-to-face sales presentation to the customer by the telemarketer, seller, or telemarketing business or its representatives.

(2) Communications by telephone or other forms of media initiated by a customer that are not the result of any solicitation by the telemarketer, seller or telemarketing business.

(3) Solicitations, telemarketing or the use of telephone equipment in connection with any sale of goods or services by a business supplier to a business or between businesses.

(4) Use of telephones or telemarketing by or on behalf of a charitable/fraternal organization in connection with charitable/fraternal solicitations as those terms are defined in § 2593 of this title; provided, however, that a corporation claiming exemption pursuant to § 2593(1)c. of this title must also satisfy the requirements of § 2503A(e) of this title.

(5) Use of telephones or telemarketing for fundraising and other noncommercial purposes by religious, charitable, political, educational, labor and social organizations or entities not otherwise regulated by §§ 2591 through 2597 of this title.

(6) Use of telephones or telemarketing by or on behalf of a licensed insurance broker, agent, customer representative or solicitor when making solicitations is within the scope of the person’s license. For this purpose, a “licensed” person is one who or that is authorized by the Insurance Commissioner to conduct business within the State pursuant to Title 18.

(7) Use of telephones or telemarketing by or on behalf of a person lawfully registered with the Delaware Securities Commissioner pursuant to § 73-301 of this title and acting within the scope of the person’s registration as a broker-dealer, investment advisor or agent.

(8) Use of telephones or telemarketing by or on behalf of a supervised financial institution or parent, subsidiary or affiliate thereof. For purposes of this exemption, “supervised financial institution” shall mean any bank, trust company, savings bank, credit card institution, building and loan association, building and industrial development corporation, licensed mortgage loan broker, licensed lender, licensed check seller or money transmitter, licensed cashier of checks, licensed motor vehicle sales finance company, licensed transporter of money and valuables, licensed preneed burial contractor, credit union, industrial loan company, or other institution engaged in a business similar to any of the foregoing; provided, however, that such institution is subject to supervision and regulation by the Delaware State Banking Commission or any official or agency of any state or of the United States. For purposes of this exemption, “subsidiary” and “affiliate” shall have the meanings specified in § 101 of Title 5.

(9) Soliciting sales through the distribution of a catalog which:

a. Contains a written description, picture or illustration and price of each item of merchandise offered for sale;

b. Includes the business address of the company;

c. Is distributed in more than 1 state;

d. Includes at least 10 pages of written material or illustration;

e. Is issued not less frequently than once a year;

f. Has an annual circulation of not less than 100,000 consumers; and

g. The company’s use of telephones is solely for the receipt of calls initiated by customers in response to the catalog and during those calls the person representing the company takes orders for merchandise only without further solicitation. For this purpose, “further solicitation” does not include providing the customer with information about or attempting to sell any other item included in the same catalog that prompted the customer’s call or in a substantially similar catalog.

(10) The sale of goods or services for which the terms and conditions of offering or sale are subject to regulations by the Public Service Commission or the Federal Communications Commission, such sales being governed by the provisions of applicable rate sheets, tariffs or rules of those Commissions.

72 Del. Laws, c. 262, § 1; 78 Del. Laws, c. 175, § 98.

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