DE HB162

Establishes new regulations for multilevel distribution companies (MLMs) in Delaware, defining them as businesses that sell goods or services through independent agents at different levels and pay consideration based on sales or recruitment

Requires MLMs to provide prospective purchasers with quarterly-updated written disclosures including company information, compensation plan details, inventory requirements, number of sellers in the state, percentage of buyers who earn more than their initial investment, and median earnings of all participants

Mandates that MLMs repurchase goods in resalable condition if they require participants to buy products or pay consideration to join the marketing program

Grants participants a 3-month cancellation period during which they can exit for any reason and receive a repurchase price of at least 90% of the original amount paid, in the same form of payment

Creates a private right of action allowing injured parties to recover treble damages (3 times actual damages), court costs, and reasonable attorney's fees for violations