Illinois General Assembly - Full Text of HB5211
Illinois General Assembly

Previous General Assemblies

Full Text of HB5211  97th General Assembly


Rep. Kelly Burke

Filed: 3/1/2012





09700HB5211ham001LRB097 18755 JLS 66831 a


2    AMENDMENT NO. ______. Amend House Bill 5211 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2HHH as follows:
6    (815 ILCS 505/2HHH)
7    Sec. 2HHH. Product Authorization and verification for
8product and service charges to be billed on a telephone bill
10    (a) Definitions. For purposes of this Section:
11    "Billing agent" means a person that submits charges for
12services or goods to a telecommunications carrier on behalf of
13a third-party vendor.
14    "Third-party vendor" means an entity not affiliated with a
15telecommunications carrier that sells services or goods to a



09700HB5211ham001- 2 -LRB097 18755 JLS 66831 a

1    "Telecommunications carrier" has the same meaning as
2defined in Section 13-202 of the Public Utilities Act.
3    (b) A third-party vendor shall not bill, directly or
4through an intermediary, a consumer for goods or services that
5will appear as a charge on a consumer's telephone bill.
6    (c) A billing agent, on behalf of a third-party vendor,
7shall not submit, directly or through an intermediary, a charge
8to a telecommunications carrier for goods or services that will
9appear as a charge on a consumer's telephone bill.
10    (d) Any person who violates this Section commits an
11unlawful practice within the meaning of this Act.
12    (e) This Section does not apply to:
13        (1) services or goods provided by a telecommunications
14    carrier subject to the provisions of Section 13-903 of the
15    Public Utilities Act;
16        (2) services or goods sold by any affiliate of the
17    telecommunications carrier issuing the bill to the
18    consumer;
19        (3) services or goods sold by any third-party vendor
20    that has a direct contractual arrangement for the joint or
21    cooperative sale of such services or goods with the
22    telecommunications carrier issuing the bill to the
23    consumer; provided however, that the telecommunications
24    carrier issuing the bill to the consumer shall be
25    responsible for assuring that such services or goods are
26    not sold without the informed authorization of the



09700HB5211ham001- 3 -LRB097 18755 JLS 66831 a

1    consumer;
2        (4) wireless services, as described in Section 13-804
3    of the Public Utilities Act and any other services or goods
4    billed by or through a provider of wireless services;
5        (5) message telecommunications services that are
6    initiated by dialing 1+, 0+, 0-, or 1010XXX; or
7        (6) contributions to any charitable organization
8    subject to Section 501(c)(3) of the Internal Revenue Code.
9    "Billing agent" means any entity that submits charges to
10the billing carrier on behalf of itself or any service
12    "Billing carrier" means any telecommunications carrier, as
13defined in Section 13-202 of the Public Utilities Act, that
14issues a bill directly to a customer for any product or service
15not provided by a telecommunications carrier.
16    "Service provider" means any entity that offers a product
17or service to a consumer and that directly or indirectly
18charges to or collects from a consumer's bill received from a
19billing carrier an amount for the product or service.
20    (b) This Section does not apply to the provision of
21services and products by a telecommunications carrier subject
22to the provisions of Section 13-903 of the Public Utilities
23Act, by a telecommunications carrier's affiliates, or an
24affiliated cable or video provider, as that term is defined in
25Section 22-501 of the Public Utilities Act, or by a provider of
26public mobile services, as defined in Section 13-214 of the



09700HB5211ham001- 4 -LRB097 18755 JLS 66831 a

1Public Utilities Act.
2    (c) Requirements for submitting charges.
3        (1) A service provider or billing agent may submit
4    charges for a product or service to be billed on a
5    consumer's telephone bill on or after the effective date of
6    this amendatory Act of the 96th General Assembly only if:
7            (A) the service provider offering the product or
8        service has clearly and conspicuously disclosed all
9        material terms and conditions of the product or service
10        being offered, including, but not limited to, all
11        charges; and the fact that the charges for the product
12        or service shall appear on the consumer's telephone
13        bill;
14            (B) after the clear and conspicuous disclosure of
15        all material terms and conditions as described in
16        paragraph (A) of this item (1), the consumer has
17        expressly consented to obtain the product or service
18        offered and to have the charges appear on the
19        consumer's telephone bill and the consent has been
20        verified as provided in item (2) of this subsection
21        (c);
22            (C) the service provider offering the product or
23        service or any billing agent for the service provider
24        has provided the consumer with a toll-free telephone
25        number the consumer may call and an address to which
26        the consumer may write to resolve any billing dispute



09700HB5211ham001- 5 -LRB097 18755 JLS 66831 a

1        and to answer questions; and
2            (D) the service provider offering the product or
3        service or the billing agent has taken effective steps
4        to determine that the consumer who purportedly
5        consented to obtain the product or service offered is
6        authorized to incur charges for the telephone number to
7        be billed.
8        (2) The consumer consent required by item (1) of this
9    subsection (c) must be verified by the service provider
10    offering the product or service before any charges are
11    submitted for billing on a consumer's telephone bill. A
12    record of the consumer consent and verification must be
13    maintained by the service provider offering the product or
14    service for a period of at least 24 months immediately
15    after the consent and verification have been obtained. The
16    method of obtaining consumer consent and verification must
17    include one or more of the following:
18            (A) A writing signed and dated by the consumer to
19        be billed that clearly and conspicuously discloses the
20        material terms and conditions of the product or service
21        being offered in accordance with paragraph (A) of item
22        (1) of this subsection (c) and clearly and
23        conspicuously states that the consumer expressly
24        consents to be billed in accordance with paragraph (B)
25        of item (1) of this subsection (c) as follows:
26                (i) if the writing is in electronic form, then



09700HB5211ham001- 6 -LRB097 18755 JLS 66831 a

1            it shall contain the consumer disclosures required
2            by Section 101(c) of the federal Electronic
3            Signatures in Global and National Commerce Act;
4            and
5                (ii) the writing shall be a separate document
6            or easily separable document or located on a
7            separate screen or webpage containing only the
8            disclosures and consent described in item (1) of
9            this subsection (c).
10            (B) Third party verification by an independent
11        third party that:
12                (i) clearly and conspicuously discloses to the
13            consumer to be billed all of the information
14            required by paragraph (A) of item (1) of this
15            subsection (c);
16                (ii) operates from a facility physically
17            separate from that of the service provider
18            offering the product or service;
19                (iii) is not directly or indirectly managed,
20            controlled, directed, or owned wholly or in part by
21            the service provider offering the product or
22            service;
23                (iv) does not derive commissions or
24            compensation based upon the number of sales
25            confirmed;
26                (v) tape records the entire verification



09700HB5211ham001- 7 -LRB097 18755 JLS 66831 a

1            process, with prior consent of the consumer to be
2            billed; and
3                (vi) obtains confirmation from the consumer to
4            be billed that he or she authorized the purchase of
5            the offered good or service.
6            (C) All verifications must be conducted in the same
7        language that was used in the underlying sales
8        transaction.
9        (3) Unless verification is required by federal law or
10    rules implementing federal law, item (2) of this subsection
11    (c) does not apply to customer-initiated transactions with
12    a certificated telecommunications carrier for which the
13    service provider has the appropriate documentation.
14        (4) This Section does not apply to message
15    telecommunications service charges that are initiated by
16    dialing 1+, 0+, 0-, 1010XXX, or collect calls and charges
17    for video services if the service provider has the
18    necessary records to establish the billing for the call or
19    service.
20    (d) Records of disputed charges.
21        (1) Every service provider or billing agent shall
22    maintain records of every disputed charge for a product or
23    service placed on a consumer's bill.
24        (2) The record required under this subsection (d) shall
25    contain for every disputed charge all of the following:
26            (A) any affected telephone numbers and, if



09700HB5211ham001- 8 -LRB097 18755 JLS 66831 a

1        available, addresses;
2            (B) the date the consumer requested that the
3        disputed charge be removed from the consumer's bill;
4            (C) the date the disputed charge was removed from
5        the consumer's telephone bill; and
6            (D) the date action was taken to refund or credit
7        to the consumer any money that the consumer paid for
8        the disputed charges.
9        (3) The record required by this subsection (d) shall be
10    maintained for at least 24 months.
11    (e) Billing agents shall take reasonable steps designed to
12ensure that service providers on whose behalf they submit
13charges to a billing carrier comply with the requirements of
14this Section.
15    (f) Any service provider or billing agent who violates this
16Section commits an unlawful practice within the meaning of this
18(Source: P.A. 96-827, eff. 11-30-09.)
19    Section 99. Effective date. This Act takes effect January
201, 2013.".