Delaware's Automatic Renewal Law: What 6 Del. C. § 2734 Requires

Delaware's rules sit in Title 6 of the Delaware Code, Chapter 27, Subchapter IV, titled "Consumer Contracts," at sections 2731 through 2737. The modern automatic renewal framework was created by Senate Substitute No. 1 for Senate Bill No. 93, approved August 4, 2021 and published as 83 Del. Laws, c. 115. Section 2737(c) provides that the automatic renewal provisions of the subchapter take effect on January 1, 2022.

The definition that drives most of the subchapter is narrow, and the narrowness is the important part. Section 2731(1) defines an "automatic renewal provision" as one under which a contract is renewed for a specified period of more than one month if the renewal causes the contract to be in effect more than 12 months after the day it was initiated, and where the renewal is effective unless the consumer gives the seller notice of an intention to terminate. A plain month-to-month streaming plan does not fit, because each renewal period is only one month.

A "consumer" is an individual who purchases or leases merchandise primarily for personal, family, or household purposes. Section 2736 sets outer limits: the subchapter does not apply to contracts in which the total contract price or total amount financed exceeds $50,000, to any contract entered into with or acquired by a banking organization or building and loan association as defined in Title 5, or to a public utility tariff on file with the Delaware Public Service Commission. Section 2734(d) adds its own exclusions: matters subject to the jurisdiction of the Public Service Commission, the Insurance Commission of the State, or the FCC, and leases subject to the Residential Landlord-Tenant Code or the Manufactured Homes and Manufactured Home Communities Act. This page is general information about the statute, not legal advice.

Section 2734(a) states the up-front rule: a seller that sells, leases, or offers to sell or lease merchandise to a consumer under a contract that contains an automatic renewal provision must disclose the terms of that provision clearly and conspicuously at the time the contract is entered into.

"Clearly and conspicuously" is defined in section 2731(2). A printed disclosure must be in larger type than the surrounding text, or in contrasting type, font, or color to surrounding text of the same size, or set off from that text by symbols or other marks. A recorded audio disclosure qualifies if it is delivered in a manner that clearly calls attention to the language.

Delaware also polices readability. Section 2732 makes it a deceptive practice for a person to knowingly or recklessly distort or obscure a contract's terms, create a likelihood of confusion through unintelligible words or sentences, or omit information the law requires to be disclosed. Section 2733 gives courts a checklist, including whether cross-references are confusing, whether sentences are unreasonably long or complex, and whether restrictions on consumers' rights are given equal prominence with the main provision.

The cancellation duty is the broadest part of Delaware's law, and it is deliberately not limited to the narrow long-term contracts that trigger the notice rules. Section 2732(4) makes it a deceptive practice, with respect to a contract that automatically renews and without regard to the duration of the renewal period, to fail to provide a cost-effective, timely, and easy-to-use mechanism for cancellation. The same paragraph adds a direct sentence: a consumer who enters into a contract online shall be permitted to cancel the contract online.

That phrase "without regard to the duration of such renewal period" matters: the easy-cancellation and online-cancellation duties reach ordinary monthly subscriptions even though the section 2734 disclosure and reminder rules are keyed to the longer contracts described in section 2731(1). Section 2732 applies where the person acts knowingly or recklessly, so it targets deliberate or careless friction. If you signed up online and can find no way out except a phone queue, that is the situation it addresses.

Section 2734(b) requires a reminder, but only for the longer contracts the statute singles out. Where a contract is renewed for a specified period of more than one month and the renewal causes the contract to be in effect more than 12 months after the day it was initiated, the seller must notify the consumer of each upcoming extension no less than 30 days and no more than 60 days before the cancellation deadline under the automatic renewal provision.

The notification must clearly and conspicuously disclose four things: that unless you cancel, the contract will automatically renew; the date by which you must cancel to avoid automatic renewal; the procedures you must follow to cancel, including an online cancellation procedure the seller must provide if you entered into the contract online; and how you can obtain details of the automatic renewal provision, whether by contacting the seller at a specified telephone number or address, by being provided a copy of the provision, by being given access to the contract, or by any other appropriate method.

Section 2734(c) supplies a limited safe harbor. A seller that misses a requirement is not in violation if, as part of routine business practice, it establishes, implements, and enforces written compliance procedures, the failure to comply is the result of error, and the unearned portion of the contract is refunded as of the date the seller is notified of the error or becomes aware of it, whichever is earlier.

Delaware's automatic renewal provisions have been in force since January 1, 2022 and remain the operative framework in 2026. The substantive text still traces to 83 Del. Laws, c. 115, the 2021 act.

The most recent change to these sections came from 84 Del. Laws, c. 233, a technical corrections act carried as Senate Bill No. 125 and approved September 21, 2023. It touched sections 2732, 2734, 2735, and 2737 as part of a clean-up spanning eighteen titles of the Code. Comparing the amended text with what it replaced, the edits were drafting-style changes rather than a policy overhaul: "any seller" became "a seller," "pursuant to" became "under," lists were restructured, and "violates § 2734" became "fails to comply with § 2734 or § 2735." The day counts, thresholds, and duties were left intact.

One consequence of the 2021 structure is worth restating for 2026 subscribers: Delaware requires online cancellation for online sign-ups, but it does not impose the prescriptive one-step cancellation link, retention-offer rules, or short-plan reminder cycle that some other states have adopted. The reminder obligation still attaches only to renewals that carry a contract past the 12-month mark.

Delaware pairs public enforcement with unusually specific private remedies. Section 2737(b) deems a violation of the subchapter an unlawful practice under section 2513 of Title 6 and a violation of subchapter II of Chapter 25, Delaware's consumer fraud framework. Section 2735(a) makes any person who engages in a deceptive practice governed by the subchapter liable to a consumer for treble the amount of actual damages proved, plus reasonable attorneys' fees, and section 2735(b) allows a consumer likely to be damaged to seek an injunction.

Section 2735(c) is the provision most subscribers will care about. A contract containing an automatic renewal provision that is renewed in violation of section 2734 is voidable by the consumer. You may void it using any method that would have been sufficient to cancel before renewal, you are not liable for costs, fees, or expenses that accrue after that date, and while the seller may retain a prorated fraction of prepaid fees based on the time since the renewal, it must refund the rest within 30 days.

There is a step to take before suing. Under section 2737(a), a consumer must first provide the seller with notice of the violation and a request to cancel the extension, sent by email, mail, or any other method offered by the seller. If within 30 days the seller cures the violation and provides a written statement that it has been cured and that no further violations of that kind will occur, sending a copy to the Department of Justice's Director of Consumer Protection, the consumer may not then initiate an action over that cured violation. Nothing there precludes investigation or enforcement action by the Attorney General, and complaints go to the Department of Justice's Consumer Protection Unit. This page is general information about Delaware law as of 2026 and is not legal advice; consult the statute or a licensed Delaware attorney about a specific dispute.