HB1305 98TH GENERAL ASSEMBLY

LRB098 02937 MLW 32952 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1305

Introduced , by Rep. Robert F Martwick

SYNOPSIS AS INTRODUCED:

815 ILCS 505/2J.3 new

Amends the Consumer Fraud and Deceptive Business Practices Act. Requires any person making a promotional offer to a consumer to include the following information in large print in a conspicuous and prominent location on the advertising material: (1) the cost per month, (2) any additional fees or taxes not included in the advertised price, (3) the total price to be paid by the consumer over the course of the promotion, (4) any early termination fees, and (5) the cost per month upon conclusion of the promotion. Allows the Illinois Department of Financial and Professional Regulation to impose additional requirements on these offers. Defines a promotional offer. Makes it an unlawful business practice to publish any advertising material that does not conform to the disclosure requirements.

A BILL FOR

AN ACT concerning business.

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

Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2J.3 as follows:

(815 ILCS 505/2J.3 new)

Sec. 2J.3. Promotional Offer Advertising.

(a) For the purposes of this Section "promotional offer" means a printed offer for consumers to enter into a contract for a product or service in which the consumer pays a reduced price or fee for the service or product during a specified period of the contract.

(b) Any person that promotes or advertises any product or service by means of a promotional offer must include the following disclosures:

(1) The cost to the consumer per month.

(2) Any fees, taxes, or other costs not included in the promotional price. This includes but is not limited to delivery fees, installation fees, equipment rental fees, and sales tax.

(3) The total price to be paid by the consumer over the duration of the promotion's advertised term as calculated by the price per month plus any monthly fees, taxes, or other monthly costs not included in the monthly price multiplied by the duration of the promotion plus any non-monthly fees, taxes, or costs not included in the promotional price.

(4) Any early termination fees.

(5) The cost to the consumer per month upon conclusion of the promotion's term.

The disclosures must be printed in large print and be placed in a conspicuous and prominent location on the promotional offer.

(c) The Illinois Department of Financial and Professional Regulation may supplement these disclosure requirements in form or substance by rule.

(d) It shall be an unlawful practice within the meaning of this Act for any person to cause to be published any advertising material that does not conform to the requirements of this Section.

(e) Nothing in this Section creates liability for acts by the publisher, owner, agent, or employee of a newspaper, periodical, radio station, television station, cable television system, or other advertising medium arising out of the publication or dissemination of advertising material governed by this Section unless the publisher, owner agent, or employee had knowledge that the advertising material violated the requirements of this Section, or had a financial interest in the underlying offer.