HB4629eng 103RD GENERAL ASSEMBLY

HB4629 Engrossed LRB103 36169 SPS 66261 b

AN ACT concerning business.

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

Section 1. Short title. This Act may be cited as the Junk Fee Ban Act.

Section 5. Definitions.

"Ancillary good or service" means any additional merchandise offered to a consumer as part of the same transaction.

"Advertisement" means a notice in any printed material, television, Internet, email, text message, mobile or computer application, or any other similar physical, electronic, or digital communication regarding the sale of a consumer good or service.

"Bar" or "tavern" means an establishment that is devoted to the serving of alcoholic beverages for consumption by guests on the premises and that derives no more than 50% of its gross revenue from the sale of food consumed on the premises, including, but not limited to, bars, taverns, nightclubs, cocktail lounges, adult entertainment facilities, and cabarets.

"Consumer goods or services" means goods and services that are used or bought for use primarily for personal, family, or household purposes.

"Display price" means the displayed price of a consumer good or service provided to the consumer within the retail mercantile establishment's physical location or Internet, email, text message, mobile or computer application, or any other similar physical, electronic, or digital communication.

"Delivery fees" means any fee charged to a consumer for providing delivery of consumer goods, food, or beverages.

"Food service establishment" means a bar, tavern, or restaurant.

"Interchange fee" means a fee that a financial institution, payment processor, credit card payment network, or other person or entity charges a person, retail mercantile establishment, or food service establishment when a consumer uses a card, note, plate, coupon book, credit, or similar device to purchase a consumer product or service.

"Place of short-term lodging" means a hotel, motel, inn, short-term rental, or other place of lodging that advertises at a price that is a nightly, hourly, or weekly rate.

"Person" means an individual, natural person, public or private corporation, government, partnership, unincorporated association, or other entity. "Person" does not include food service establishment, or retail mercantile establishment.

"Pricing information" means any information relating to an amount a consumer may pay as part of a transaction.

"Restaurant" means any business that is primarily engaged in the sale of ready-to-eat food for immediate consumption. For the purpose of this definition, "primarily engaged" means having sales of ready-to-eat food for immediate consumption comprising at least 51% of the total sales, excluding the sale of liquor.

"Retail mercantile establishment" means a business that provides consumer goods and services to consumers at retail and generates occupation or use tax revenue. "Retail mercantile establishment" does not include a food service establishment.

"Shipping charges" means the fees or charges that reasonably reflect the amount to be incurred to send goods to a consumer through the mail, including private mail services.

"Total price" means the maximum total of all fees or charges a consumer shall pay for a good or service and any mandatory ancillary good or service. "Total price" does not include shipping charges or taxes, gratuities, interchange fees, discounts regulated pursuant to the Sale Price Ad Act, or fees collected and passed on to a quasi-governmental entity, including any assessment fees associated with a government created special district.

Section 10. Hidden and misleading fees. It is a violation of this Act for a person to:

(1) offer, display, or advertise an amount a consumer may pay for merchandise without clearly and conspicuously disclosing the total price;

(2) fail, in any offer, display, or advertisement that contains an amount a consumer may pay, to display the total price more prominently than any other pricing information;

(3) misrepresent the nature and purpose of any amount a consumer may pay, including the ability to refund the fees and the identity of any merchandise for which fees are charged;

(4) fail to disclose clearly and conspicuously before the consumer consents to pay, the nature and purpose of any amount a consumer may pay that is excluded from the total price, including the ability to refund the fees and the identity of any merchandise for which fees are charged; or

(5) offer, display, or advertise, including through direct offerings, third-party distribution, or metasearch referrals, a total price for a place of short-term lodging that does not include all required fees.

Section 15. Retail mercantile establishments; disclosure of total price. A retail mercantile establishment is not required to provide the total price in the display price of a consumer good or service. A retail mercantile establishment shall provide notice of a consumer fee or charge prior to the purchase of the food or beverages. A retail mercantile establishment may use any reasonable method available to provide notice of the total price, including, but not limited to, the following commercial channels:

(1) on a screen, monitor, or other display at the point of sale;

(2) website, Internet, email, text message, mobile or computer application, or any other electronic or digital communication;

(3) in-store consumer promotions, advertisement, or any other similar display;

(4) membership, loyalty, or reward program or any other similar program; or

(5) any other reasonable means available to the retail mercantile establishment.

Section 20. Food service establishments; disclosure of total price. A food service establishment is not required to provide the total price within the display price of food or beverages. A food service establishment shall provide notice of a consumer fee or charge prior to the purchase of the food or beverages. A food service establishment may use any reasonable method available to provide notice of the total price, including, but not limited to, the following commercial channels:

(1) at the establishment's premises on a menu, on a tabletop or countertop display, or through posted signage;

(2) on the establishment's website where food and beverage prices are advertised;

(3) on a screen, monitor, or other interactive display;

(4) email, text message, mobile or computer application, or any other electronic or digital communication;

(5) in-store consumer promotions, advertisement, or any other similar display;

(6) membership, loyalty, or reward program or any other similar program; or

(7) any other reasonable means available to the food service establishment.

Section 25. Disclosure of delivery fees.

(a) For consumer goods or services sold by a food service establishment or retail mercantile establishment that will be delivered by a third-party delivery service, the food service establishment or retail mercantile establishment shall require by contract with the third-party delivery service that the third-party delivery service shall comply with Section 10.

(b) A food service establishment or retail mercantile establishment is not responsible for violations of Section 10 solely as a result of a third-party delivery service failing to comply with Section 10.

Section 30. Limitations.

(a) Nothing in this Act shall be construed to limit, regulate, or prohibit a retail mercantile establishment or food establishment's ability to charge consumers fees or similar charges associated with consumer goods, food, beverages, or services.

(b) Nothing in this Act shall be construed to limit, regulate, or prohibit a retail mercantile establishment's or food establishment's ability to set prices for consumer goods or services.

(c) The requirements of this Act do not apply to consumer purchases made at wholesale clubs that sell consumer goods and services through a membership model.

(d) Nothing in this Act alters any federal law or regulation.

(e) Nothing in this Act shall infringe or impede on any right or remedy available under State law or rule.

Section 35. Enforcement under the Consumer Fraud and Deceptive Business Practices Act. The Attorney General may enforce violations of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by that Act shall be available to the Attorney General for the enforcement of this Act.

Section 40. Home rule. The disclosure of the total price, as defined in this Act, of a consumer good or service is an exclusive power and function of the State. A home rule unit may not regulate the disclosure of total prices by retail mercantile establishments or food service establishments. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.