State of Illinois
2011 and 2012


Introduced 2/1/2012, by Sen. Ira I. Silverstein


New Act

    Creates the Consumer Contract Right to Know Act. Requires certain disclosures to be made by a person who utilizes standard form consumer contracts in the usual course of business. Provides that consumers must be given access to standard form consumer contracts before a sale to enable the consumer to comparison shop. Authorizes the Attorney General to enforce the Act. Provides remedies, including statutory damages. Applies to contracts initiated on or after the effective date of this Act. Effective immediately.

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1    AN ACT concerning standard form consumer contract
2disclosure in Illinois.
3    Be it enacted by the People of the State of Illinois,
4represented in the General Assembly:
5    Section 1. Short title. This Act may be cited as the
6Consumer Contract Right to Know Act.
7    Section 5. Definitions. As used in this Act:
8    "Consumer" means an individual who borrows, buys, or leases
9services or products under a consumer contract.
10    "Consumer contract" or "contract" means a written
11agreement between a consumer and a party, acting in the usual
12course of business, for products or services made or performed
13for primarily personal, family, or household purposes. A
14"consumer contract" includes, but is not limited to, standard
15form contracts, consumer agreements, forms, or terms.
16    "Covered entity" means a person who utilizes standard form
17consumer contracts in the usual course of business.
18    "Reasonable access" includes:
19        (1) posting of contracts on the company website in a
20    location that is clear and accessible to consumers;
21        (2) making contracts available from the company at its
22    usual places of business; and
23        (3) providing written copies of contracts upon request



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1    by telephone, fax, e-mail, letter, or other standard means
2    of communication.
3    "Reasonable access" does not include oral conveyance of
4contract terms.
5    "Transaction" means a business transaction that occurs
6between a consumer and a covered entity for the exchange of
7products or services through the use of a consumer contract.
8    Section 10. Scope and applicability. Unless disclosure is
9prohibited under federal or state statute, this Act applies to
10all standard form consumer contracts.
11    Section 15. Mandatory disclosure.
12    (a) A covered entity must:
13        (1) provide access to any standard form contract
14    utilized by the covered entity before the point-of-sale to
15    enable the consumer to read and comparison shop the actual
16    terms of the contract; and
17        (2) make available to consumers these same contracts in
18    a manner that is reasonably accessible.
19    (b) A covered entity may not:
20        (1) condition consumer access to contracts with a
21    requirement of sale or application or otherwise require
22    consent to the contract.
23        (2) enter into a contract with a consumer pursuant to
24    which the consumer seeks or purports to waive his or her



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1    rights under this Act.
2    Section 20. Enforcement. The Illinois Attorney General may
3bring an action to enforce this Act and to obtain injunctive
4relief in any court of competent jurisdiction not later than 5
5years after the date of the violation.
6    Section 25. Safe harbor. There shall be no liability under
7this Act if any of the following occurs:
8        (1) the consumer wrote the contract; or
9        (2) the creditor, seller or lessor made a good faith
10    and reasonable effort to comply with this Act.
11    Section 30. Penalties. A person who knowingly violates the
12requirements of Section 15 shall be liable to the consumer for
13the following:
14        (1) compensation in an amount equal to the value of any
15    actual loss caused by the violation of this Act;
16        (2) statutory damages of the lesser of $1000 or the
17    total amount of the contract;
18        (3) court costs;
19        (4) reasonable attorney's fees; and
20        (5) any equitable and other relief ordered by the
21    court.
22    Section 99. Effective date. This Act takes effect upon
23becoming law.