CHAPTER 390

AN ACT PROHIBITING THE DISTRIBUTION OF UNREQUESTED CREDIT CARDS IN THE STATE OF DELAWARE.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Chapter 25, Title 6, Delaware Code, is amended by adding a new "Subchapter IV" to read as follows:

SUBCHAPTER IV

DISTRIBUTION OF CREDIT CARDS

§ 2541. Definitions

As used in this subchapter—

"Credit card" means any card or document entitling its holder to obtain any goods or services by the production of such card or document, and entitling its holder to tender payment for such goods and services at a later date.

§ 2543. Prohibition upon distribution

No person, association, corporation, partnership, or any representative thereof, shall distribute any credit card to any person, association, corporation, partnership, or any representative thereof, within the State of Delaware unless such credit card shall have been requested or unless the issuer shall have given at least 14 days' notice of intention to issue such card. Such notice shall also include a conspicuous legend that the prospective holder has the right to refuse the credit card and shall be accompanied by a postage prepaid, preaddressed envelope or card upon which the prospective holder may indicate such refusal. Provided, however, that use of the credit card by the intended recipient shall constitute acceptance, but there shall be no liability by the intended recipient prior to his use of same. This subchapter shall not apply to the issuance of renewal or substitute cards.

§ 2545. Penalty

Whoever violates the provisions of Section 2543 shall be guilty of a misdemeanor and shall be fined not less than $100 nor more than $500 for each offense.

§ 2547. Injunctive relief

Whenever the Attorney General has reason to believe' that a violation of Section 2543 is a continuing practice, he may apply to the Court of Chancery and may obtain the appropriate injunctive relief pursuant to the Rules of the Court of Chancery against any violator.

Approved April 30, 1970.