103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0328

 

Introduced 2/2/2023, by Sen. Suzy Glowiak Hilton

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 601/5
815 ILCS 601/10

    Amends the Automatic Contract Renewal Act. Provides that the clear and conspicuous disclosure of an automatic renewal clause displayed during the contract formation process must require the consumer to affirmatively consent to the renewal terms. Provides for additional notice requirements concerning contracts that automatically renew for a specified term of more than one month unless the consumer cancels the contract. Provides for additional notice requirements concerning contracts that allow the consumer to accept a free gift or trial as part of an automatic renewal offer before the consumer makes any payment, or where such contract entitles the consumer to an introductory reduced, promotional, or discounted rate before the customer begins paying the full rate. Provides that a person, firm, partnership, association, or corporation that allows consumers to accept an automatic renewal or continuous service offer online shall allow a consumer to terminate the automatic renewal or continuous service exclusively online, at will, and without engaging any further steps that obstruct or delay the consumer's ability to terminate the automatic renewal or continuous service immediately. Defines "clear and conspicuous".


LRB103 27045 SPS 53413 b

 

 

A BILL FOR

 

SB0328LRB103 27045 SPS 53413 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Automatic Contract Renewal Act is amended
5by changing Sections 5 and 10 as follows:
 
6    (815 ILCS 601/5)
7    Sec. 5. Definitions. In this Act:
8    "Clear and conspicuous" means in larger type than the
9surrounding text, or in contrasting type, font, or color to
10the surrounding text of the same size, or set off from the
11surrounding text of the same size by symbols or other marks, in
12a manner that clearly calls attention to the language. In the
13case of an audio disclosure, "clear and conspicuous" means in
14a volume and cadence sufficient to be readily audible and
15understandable.
16    "Contract" means a written agreement between 2 or more
17parties.
18    "Parties" includes individuals and other legal entities,
19but does not include the federal government, this State or
20another state, or a unit of local government.
21(Source: P.A. 101-412, eff. 8-16-19; 102-558, eff. 8-20-21.)
 
22    (815 ILCS 601/10)

 

 

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1    Sec. 10. Automatic renewal; requirements.
2    (a) Any person, firm, partnership, association, or
3corporation that sells or offers to sell any products or
4services to a consumer pursuant to a contract, where such
5contract automatically renews unless the consumer cancels the
6contract, shall disclose the automatic renewal clause clearly
7and conspicuously both in the contract and during the process
8by which a consumer enters into the contract, including the
9cancellation procedure. The clear and conspicuous disclosure
10of the automatic renewal clause displayed during the contract
11formation process must require the consumer to affirmatively
12consent to the renewal terms.
13    (b) Any person, firm, partnership, association, or
14corporation that sells or offers to sell any products or
15services to a consumer pursuant to a contract, where such
16contract term is a specified term of 12 months or more, and
17where such contract automatically renews for a specified term
18of more than one month unless the consumer cancels the
19contract, shall notify the consumer in writing of the
20automatic renewal. Written notice shall be provided to the
21consumer no less than 30 days and no more than 60 days before
22the cancellation deadline pursuant to the automatic renewal
23clause. Such written notice shall disclose clearly and
24conspicuously, in a retainable form:
25        (i) that unless the consumer cancels the contract it
26    will automatically renew; and

 

 

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1        (ii) where the consumer can obtain details of the
2    automatic renewal provision and cancellation procedure
3    (for example, by contacting the business at a specified
4    telephone number or address or by referring to the
5    contract); .
6        (iii) the dollar amount that will be charged to the
7    consumer if the consumer does not cancel the contract;
8        (iv) the length of time for which the contract permits
9    the consumer to be charged for the products and services
10    provided under the agreement; and
11        (v) a link that directs the consumer to the
12    cancellation process.
13    (b-5) A person, firm, partnership, association, or
14corporation that makes an automatic renewal offer or
15continuous service offer online shall provide a toll-free
16telephone number, electronic mail address, a postal address if
17the seller directly bills the consumer, or another
18cost-effective, timely, and easy-to-use mechanism for
19cancellation that shall be described in the notice required in
20subsection (b). A consumer who accepts an automatic renewal or
21continuous service offer online must be allowed to terminate
22the automatic renewal or continuous service exclusively
23online, which may include a termination email formatted and
24provided by the business that a consumer can send to the
25business without additional information.
26    (b-10) Any person, firm, partnership, association, or

 

 

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1corporation that sells or offers to sell any products or
2services to a consumer pursuant to a contract, where such
3contract allows the consumer to accept a free gift or trial as
4part of an automatic renewal offer before the consumer makes
5any payment, or where such contract entitles the consumer to
6an introductory reduced, promotional, or discounted rate
7before the customer begins paying the full rate, shall be
8subject to the requirements described in subsection (b) and
9shall provide notice at least 3 days before, and at most 21
10days before, the expiration of the predetermined period of
11time for which the free gift or trial, or reduced,
12promotional, or discounted rate applies.
13    An offer shall be exempt from the requirements under this
14subsection if the consumer does not enter into the contract
15electronically and the business has not collected or
16maintained the consumer's valid email address, phone number,
17or another means of notifying the consumer electronically.
18    (b-15) A person, firm, partnership, association, or
19corporation that allows consumers to accept an automatic
20renewal or continuous service offer online shall allow a
21consumer to terminate the automatic renewal or continuous
22service exclusively online, at will, and without engaging any
23further steps that obstruct or delay the consumer's ability to
24terminate the automatic renewal or continuous service
25immediately. The business shall provide a method of
26termination that is clearly and conspicuously available online

 

 

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1in the form of either, or both, of the following:
2        (i) a prominently located direct link or button which
3    may be located within either a customer account or
4    profile, or within either device or user settings; or
5        (ii) by an immediately accessible termination email
6    formatted and provided by the business that a consumer can
7    send to the business without additional information.
8    The link or button and the email described in this
9subsection shall also feature a clear and conspicuous phone
10number which consumers may call in order to terminate their
11automatic renewal contract. Termination via phone call shall
12be sufficient in lieu of the online termination process.
13    (c) A person, firm, partnership, association, or
14corporation will not be liable for a violation of this Act or
15the Consumer Fraud and Deceptive Business Practices Act if
16such person, firm, partnership, association, or corporation
17demonstrates that, as part of its routine business practice:
18        (i) it has established and implemented written
19    procedures to comply with this Act and enforces compliance
20    with the procedures;
21        (ii) any failure to comply with this Act is the result
22    of error; and
23        (iii) where an error has caused a failure to comply
24    with this Act, it provides a full refund or credit for all
25    amounts billed to or paid by the consumer from the date of
26    the renewal until the date of the termination of the

 

 

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1    account, or the date of the subsequent notice of renewal,
2    whichever occurs first.
3(Source: P.A. 102-517, eff. 1-1-22.)