State of Illinois
91st General Assembly
Legislation

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91_HB0921

 
                                               LRB9103504SMpk

 1        AN ACT regarding telephone sales calls.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State Finance Act is amended by adding
 5    Section 5.490 as follows:

 6        (30 ILCS 105/5.490 new)
 7        Sec. 5.490.  The Telephone Solicitations Act Fund.

 8        Section 10.  The Telephone Solicitation Act is amended by
 9    adding Sections 105, 110, 115, 120, 125, 130, 135, 140,  145,
10    150, 155, and 160 as follows:

11        (815 ILCS 413/105 new)
12        Sec. 105.  Definitions.  As used in this Act:
13        "Commission" means the Illinois Commerce Commission.
14        "Consumer"  means  an  actual  or  prospective purchaser,
15    lessee, or recipient of  consumer goods or services.
16        "Consumer goods or services" means any real  property  or
17    any  tangible  or    intangible  personal  property  which is
18    normally used for personal, family,  or  household  purposes,
19    including,  without limitation, any such property intended to
20    be attached to or installed  in  any  real  property  without
21    regard  to whether it is so attached or installed, as well as
22    cemetery lots and timeshare estates, and any services related
23    to such property.
24        "Doing business in this State" refers to  businesses  who
25    conduct telephonic sales calls from a location in Illinois or
26    from   other  states  or  nations  to  consumers  located  in
27    Illinois.
28        "Merchant" means a person who,  directly  or  indirectly,
29    offers  or makes available to consumers any consumer goods or
 
                            -2-                LRB9103504SMpk
 1    services.
 2        "Telephonic sales call" means a call made by a  telephone
 3    solicitor to a consumer, for the purpose of soliciting a sale
 4    of  any  consumer  goods  or  services, or for the purpose of
 5    soliciting an extension  of  credit  for  consumer  goods  or
 6    services,  or  for  the purpose of obtaining information that
 7    will or may be used for the direct solicitation of a sale  of
 8    consumer goods or services or an extension of credit for such
 9    purposes.
10        "Telephone  solicitor"  means  any  natural person, firm,
11    organization, partnership, association, or corporation, or  a
12    subsidiary  or  affiliate  thereof,  doing  business  in this
13    State, who makes or causes to  be  made  a  telephonic  sales
14    call,  including,  but  not  limited to, calls made by use of
15    automated dialing or recorded message devices.
16        "Unsolicited telephonic sales call"  means  a  telephonic
17    sales call other than a call made:
18        (1)  in  response  to  an  express  request of the person
19    called;
20        (2)  primarily in connection with  an  existing  debt  or
21    contract,  payment  or  performance  of  which  has  not been
22    completed at the time of the call;
23        (3)  to any person with whom the telephone solicitor  has
24    a prior or existing business relationship; or
25        (4)  by  a  newspaper  publisher  or  his or her agent or
26    employee in  connection with his or her business.

27        (815 ILCS 413/110 new)
28        Sec.  110.   Identification  of  solicitor;  request  for
29    consent to solicitation.  Any telephone solicitor  who  makes
30    an  unsolicited  telephonic  sales  call  to  a  residential,
31    mobile,  or  telephonic  paging device telephone number shall
32    identify himself or herself by his or her true first and last
33    names  and  the  business  on  whose  behalf  he  or  she  is
 
                            -3-                LRB9103504SMpk
 1    soliciting immediately upon making contact by telephone  with
 2    the  person  who  is the object of the telephone solicitation
 3    and shall inquire at the beginning of the  call  whether  the
 4    person called consents to the solicitation.

 5        (815 ILCS 413/115 new)
 6        Sec.  115.   "No sales solicitation calls" listing; fees;
 7    fund established.
 8        (a)  Any residential, mobile, or telephonic paging device
 9    telephone subscriber desiring to be placed  on  a  "no  sales
10    solicitation  calls"  listing  indicating that the subscriber
11    does not wish to receive unsolicited telephonic  sales  calls
12    may  notify the Commission and be placed on that listing upon
13    receipt by the Commission of a $10  initial  listing  charge.
14    This  listing shall be renewed by the Commission annually for
15    each consumer upon receipt of  a  renewal  notice  and  a  $5
16    assessment.
17        (b)  The   Commission   shall   update   its   "no  sales
18    solicitation calls" listing upon receipt of initial  consumer
19    subscriptions  or renewals and provide this listing for a fee
20    to telephone solicitors upon request.
21        (c)  The Telephone Solicitations Act Fund is created as a
22    special  fund  in  the  State  Treasury.   All  fee  revenues
23    received by the Commission under this Act shall be  deposited
24    into  the Telephone Solicitations Act Fund.  All money in the
25    Telephone Solicitations Act Fund shall be  used,  subject  to
26    appropriation by the General Assembly, for the administration
27    of this Act by the Commission.

28        (815 ILCS 413/120 new)
29        Sec.  120.   No  sales  calls to numbers on the "no sales
30    solicitation calls" list; exception.  No telephone  solicitor
31    shall  make  or  cause  to be made any unsolicited telephonic
32    sales call to any residential, mobile, or  telephonic  paging
 
                            -4-                LRB9103504SMpk
 1    device  telephone  number  if  the  number for that telephone
 2    appears in the then-current quarterly  listing  published  by
 3    the Commission.  Any telephone solicitor or person who offers
 4    for sale any consumer information which includes residential,
 5    mobile, or telephonic paging device telephone numbers, except
 6    directory   assistance  and  telephone  directories  sold  by
 7    telephone companies and organizations  exempt  under  Section
 8    501(c)(3)  or Section 501(c)(6) of the Internal Revenue Code,
 9    shall screen and exclude those numbers which  appear  on  the
10    Commission's then-current "no sales solicitation calls" list.
11    This  Section  does not apply to any person licensed pursuant
12    to the Real Estate License Act of 1983 who calls an actual or
13    prospective seller or lessor of real property when such  call
14    is  made  in  response  to  a  yard  sign  or  other  form of
15    advertisement placed by the seller or lessor.

16        (815 ILCS 413/125 new)
17        Sec.  125.   Enforceable  telephonic   sales   contracts;
18    contracts not covered.
19        (a)  A  contract made pursuant to a telephonic sales call
20    is not valid and enforceable against a consumer  unless  made
21    in compliance with this Section.
22        (b)  A contract made pursuant to a telephonic sales call:
23             (1)  shall  be  reduced to writing and signed by the
24        consumer;
25             (2)  shall comply with all other applicable laws and
26        rules;
27             (3)  shall  match  the  description  of   goods   or
28        services   as   principally   used   in   the   telephone
29        solicitations;
30             (4)  shall  contain the name, address, and telephone
31        number of the seller, the total price  of  the  contract,
32        and a detailed description of the goods or services being
33        sold;
 
                            -5-                LRB9103504SMpk
 1             (5)  shall   contain,  in  bold,  conspicuous  type,
 2        immediately  preceding  the  signature,   the   following
 3        statement:
 4                  "You  are not obligated to pay any money unless
 5             you sign  this    contract  and  return  it  to  the
 6             seller."; and
 7             (6)  may  not  exclude  from  its  terms any oral or
 8        written representations made by the  telephone  solicitor
 9        to the consumer in connection with the  transaction.
10        (c)  The  provisions  of  this  Section  do  not apply to
11    contractual sales regulated under  other  provisions  of  the
12    Illinois  Compiled  Statutes,  or  to  the  sale of financial
13    services, security sales, or sales transacted by companies or
14    their wholly owned subsidiaries or  agents,  which  companies
15    are regulated by Article XIII of the Public Utilities Act, or
16    to  any  sales where no prior payment is made to the merchant
17    and an invoice accompanies the goods or services allowing the
18    consumer 7 days to cancel or return  without  obligation  for
19    any payment.

20        (815 ILCS 413/130 new)
21        Sec. 130.  Requirement of signed contract before customer
22    charged; exceptions.
23        (a)  A merchant who engages a telephone solicitor to make
24    or cause to be made a telephonic sales call shall not make or
25    submit  any  charge  to the consumer's credit card account or
26    make or cause to be made any  electronic  transfer  of  funds
27    until after the merchant receives from the consumer a copy of
28    the  contract,  signed  by the purchaser, which complies with
29    this Act.
30        (b)  The provisions of this Section do  not  apply  to  a
31    transaction:
32             (1)  made  in  accordance with prior negotiations in
33        the course of a visit  by  the  consumer  to  a  merchant
 
                            -6-                LRB9103504SMpk
 1        operating  a  retail  business  establishment which has a
 2        fixed permanent location and  where  consumer  goods  are
 3        displayed or offered for sale on a continuing basis;
 4             (2)  in  which the consumer may obtain a full refund
 5        for the  return  of  undamaged  and  unused  goods  or  a
 6        cancellation  of  services  notice to the seller within 7
 7        days after receipt by the consumer, and the  seller  will
 8        process  the  refund  within 30 days after receipt of the
 9        returned merchandise by the consumer;
10             (3)  in  which  the  consumer  purchases  goods   or
11        services  pursuant  to  an  examination  of a television,
12        radio, or print advertisement or a sample,  brochure,  or
13        catalog of the merchant that contains:
14                  (A)  the name, address, and telephone number of
15             the merchant;
16                  (B)  a  description  of  the  goods or services
17             being sold; and
18                  (C)  any limitations or restrictions that apply
19             to the offer; or
20             (4)  in which the merchant is a bona fide charitable
21        organization or a  newspaper as defined in the  Newspaper
22        Legal Notice Act.

23        (815 ILCS 413/135 new)
24        Sec.  135.   Restrictions  on  use  of  automated dialing
25    systems and recorded messages.
26        (a)  No person shall make or knowingly allow a telephonic
27    sales call to be made  if  the  call  involves  an  automated
28    system  for  the selection or dialing of telephone numbers or
29    the playing of  a  recorded  message  when  a  connection  is
30    completed to a number called.
31        (b)  Nothing  in  this  Section  prohibits  the use of an
32    automated telephone dialing system with live messages if  the
33    calls  are made or messages given solely in response to calls
 
                            -7-                LRB9103504SMpk
 1    initiated by the persons to whom the automatic calls or  live
 2    messages  are  directed  or if the telephone numbers selected
 3    for automatic dialing  have  been  screened  to  exclude  any
 4    telephone  subscriber  who  is  included  on the Commission's
 5    then-current "no sales solicitation  calls"  listing  or  any
 6    unlisted telephone number, or if the calls made concern goods
 7    or services that have been previously ordered or purchased.

 8        (815 ILCS 413/140 new)
 9        Sec.  140.  Restriction on hours of operation.  No person
10    shall place an unsolicited telephonic sales call  during  the
11    hours between 9 p.m. and 8 a.m.

12        (815 ILCS 413/145 new)
13        Sec.  145.   Enforcement  by  the  Commission or Attorney
14    General.  The Commission  shall  investigate  any  complaints
15    received  concerning  violations  of  this  Act.   If,  after
16    investigating  any complaint, the Commission finds that there
17    has been a violation of  this  Act,  the  Commission  or  the
18    Attorney  General  may  bring  an  action  to  impose a civil
19    penalty  and  to  seek  other  relief,  including  injunctive
20    relief, as the court deems appropriate against the  telephone
21    solicitor.   The  civil  penalty shall not exceed $10,000 per
22    violation and shall be deposited in the General Revenue Fund.
23    This civil penalty may be recovered  in  any  action  brought
24    under  this  Section by the Attorney General, or the Attorney
25    General  may  terminate  any  investigation  or  action  upon
26    agreement by the person to pay a  stipulated  civil  penalty.
27    The Attorney General or the court may waive any civil penalty
28    if  the  person  has  previously  made  full  restitution  or
29    reimbursement or has paid actual damages to the consumers who
30    have  been injured by the violation.  Nothing in this Section
31    shall  prevent  the  Attorney  General  from  initiating   an
32    investigation and enforcement action.
 
                            -8-                LRB9103504SMpk
 1        (815 ILCS 413/150 new)
 2        Sec. 150.  Enforcement by consumer.  Any consumer injured
 3    by  a  violation  of  this  Act  may  bring an action for the
 4    recovery of damages.  Judgment may be entered for 3 times the
 5    amount at which the actual damages are assessed,  plus  costs
 6    and reasonable attorney's fees.

 7        (815 ILCS 413/155 new)
 8        Sec. 155.  Attorney's fees and costs.
 9        (a)  In any civil litigation resulting from a transaction
10    involving  a  violation  of  this  Act, the prevailing party,
11    after judgment in the  trial  court  and  exhaustion  of  all
12    appeals,   if  any,  shall  receive  his  or  her  reasonable
13    attorney's fees and costs from the nonprevailing party.
14        (b)  The attorney for the prevailing party shall submit a
15    sworn affidavit of his or her time spent on the case and  his
16    or  her  costs  incurred  for  all the motions, hearings, and
17    appeals to the trial judge who presided over the civil case.
18        (c)  The trial judge shall award the prevailing party the
19    sum of  reasonable  costs  incurred  in  the  action  plus  a
20    reasonable legal fee for the hours actually spent on the case
21    as sworn to in an affidavit.
22        (d)  Any award of attorney's fees or costs shall become a
23    part  of  the  judgment  and  subject to execution as the law
24    allows.
25        (e)  In any civil litigation initiated by the  Commission
26    or   the  Attorney  General,  the  court  may  award  to  the
27    prevailing party reasonable attorney's fees and costs if  the
28    court   finds   that  there  was  a  complete  absence  of  a
29    justiciable issue of either law or fact raised by the  losing
30    party  or  if  the  court  finds bad faith on the part of the
31    losing party.

32        (815 ILCS 413/160 new)
 
                            -9-                LRB9103504SMpk
 1        Sec. 160.  Commission to inform consumers regarding  Act.
 2    The  Commission  shall by rule ensure that telecommunications
 3    companies inform their customers of the  provisions  of  this
 4    Act.  The notification may be made by:
 5        (a)  annual  inserts  in the billing statements mailed to
 6    customers; and
 7        (b)  conspicuous  publication  of  the  notice   in   the
 8    consumer   information   pages   of   the   local   telephone
 9    directories.

10        (815 ILCS 413/5 rep.)
11        (815 ILCS 413/10 rep.)
12        (815 ILCS 413/15 rep.)
13        (815 ILCS 413/20 rep.)
14        (815 ILCS 413/23 rep.)
15        (815 ILCS 413/25 rep.)
16        Section  15.   The Telephone Solicitations Act is amended
17    by repealing Sections 5, 10, 15, 20, 23, and 25.
 
                            -10-               LRB9103504SMpk
 1                                INDEX
 2               Statutes amended in order of appearance
 3    30 ILCS 105/5.490 new
 4    815 ILCS 413/105 new
 5    815 ILCS 413/110 new
 6    815 ILCS 413/115 new
 7    815 ILCS 413/120 new
 8    815 ILCS 413/125 new
 9    815 ILCS 413/130 new
10    815 ILCS 413/135 new
11    815 ILCS 413/140 new
12    815 ILCS 413/145 new
13    815 ILCS 413/150 new
14    815 ILCS 413/155 new
15    815 ILCS 413/160 new
16    815 ILCS 413/5 rep.
17    815 ILCS 413/10 rep.
18    815 ILCS 413/15 rep.
19    815 ILCS 413/20 rep.
20    815 ILCS 413/23 rep.
21    815 ILCS 413/25 rep.

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