A lobbyist for the real estate industry and an executive from telecom giant AT&T testified March 17 in opposition to legislation that would give the Delaware Attorney General’s Office greater authority in enforcing consumer protection laws.
The business representatives took issue with a bill authored by Rep. Helene Keeley, D-Wilmington South, giving the Director of Consumer Protection the power to issue cease and desist orders to businesses he or she deems to have violated the law, as well as to initiate administrative hearings to adjudicate complaints, with civil penalties of up to $5,000 per count.
Denis P. Dunn, a regional AT&T executive, told the House Judiciary Committee that if Delaware enacts such legislation, it could cause his company to think twice before doing business in the state.
“I hope to bring good things in terms of investment and jobs,” Dunn said. “This makes it difficult. I can say, ‘They don’t have these rules in Ohio.’”
Scott Kidner, a lobbyist for the Delaware Association of Realtors, said the bill gives the consumer protection unit too much power, particularly in terms of the cease and desist orders, which, under the bill, could be imposed for periods of 14 days.
“This is directed at the business community. [The consumer protection office] is going to have broader authority,” he said. “That’s a large philosophical issue.”
Deputy Attorney General Ian McConnel, who heads the consumer protection unit, said the legislation does not give his office carte blanche.
A cease and desist order is only put in place in advance of a hearing on the complaint, which must take place before the 14 days are up.
“This would allow us to be more proactive; it’s a consumer-friendly bill,” McConnel said.
The hearing process will be impartial, he added, since the bill requires the hearing officer to be from a separate division of the Attorney General’s Office.
If a respondent business is dissatisfied with the hearing officer’s ruling, the decision can be appealed to Superior Court.
Dunn argued there is no need for the legislation and the courts should be able to handle consumer protection cases.
Keeley, the sponsor, defended her bill.
“[The consumer protection office] is getting 10,000 complaints a year. There’s obviously a need for this,” she said.
