The invention is directed to improved automatic dispenser apparatus for dispensing sheet material and the like without contact between a user and the dispenser. Proximity detection apparatus is provided to detect the presence of a user in a detection zone generated outside the dispenser. Control apparatus controls actuation of the dispenser in response to the detected user. Preferred forms of the proximity detector include a sensor and a signal detection circuit operatively connected to the sensor. The sensor includes conductors configured to have a capacitance and positioned such that the capacitance is changed by the presence of a user within the detection zone. The signal detection circuit detects the change in capacitance and is provided with an oscillator having a frequency which is affected by the sensor capacitance and a differential frequency discriminator which detects changes in the oscillator frequency. The control circuit receives the detected frequency change and generates a signal provided to actuate the dispenser to dispense the material.