Illinois General Assembly - Full Text of SB2764
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Full Text of SB2764  103rd General Assembly

SB2764eng 103RD GENERAL ASSEMBLY

 


 
SB2764 EngrossedLRB103 36659 SPS 66768 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 Section 10 as follows:
 
6    (815 ILCS 601/10)
7    Sec. 10. Automatic renewal; requirements.
8    (a) Any person, firm, partnership, association, or
9corporation that sells or offers to sell any products or
10services to a consumer pursuant to a contract, where such
11contract automatically renews unless the consumer cancels the
12contract, shall:
13        (i) disclose the automatic renewal offer terms clearly
14    and conspicuously in the contract before the subscription
15    or purchasing agreement is fulfilled and in visual
16    proximity, or in the case of an offer conveyed by voice, in
17    temporal proximity, to the request for consent to the
18    offer;
19        (ii) not charge the consumer's credit or debit card or
20    other payment mechanism for an automatic renewal service
21    without first obtaining the consumer's consent to the
22    contract containing the automatic renewal offer terms;
23        (iii) provide an acknowledgment that includes the

 

 

SB2764 Engrossed- 2 -LRB103 36659 SPS 66768 b

1    automatic renewal offer terms, cancellation policy, and
2    information regarding how to cancel, which may be
3    accomplished by linking to a resource that provides
4    instructions that account for different platforms and
5    services, in a manner that is capable of being retained by
6    the consumer; and
7        (iv) if the offer includes a free gift or trial,
8    disclose how to cancel the contract, which may be
9    accomplished by linking to a resource that provides
10    instructions that account for different platforms and
11    services, and allow the consumer to cancel before the
12    consumer pays for the good or services.
13    (a-5) Any person, firm, partnership, association, or
14corporation that sells or offers to sell any products or
15services to a consumer pursuant to a contract that includes a
16free trial or a promotional period of the product or service
17that lasts 15 days or longer, where such contract
18automatically renews unless the consumer cancels the contract,
19shall notify the consumer during the free trial or the
20promotional period no less than 3 days before the cancellation
21deadline as described by the automatic renewal offer terms.
22The person, firm, partnership, association, or corporation
23shall send the notice in a method in which the consumer is
24accustomed to interacting with the person, firm, partnership,
25association, or corporation.
26    (b) Any person, firm, partnership, association, or

 

 

SB2764 Engrossed- 3 -LRB103 36659 SPS 66768 b

1corporation that sells or offers to sell any products or
2services to a consumer pursuant to a contract, where such
3contract term is a specified term of 12 months or more, and
4where such contract automatically renews for a specified term
5of more than one month unless the consumer cancels the
6contract, shall notify the consumer in writing of the
7automatic renewal. Written notice shall be provided to the
8consumer no less than 30 days and no more than 60 days before
9the cancellation deadline pursuant to the automatic renewal
10offer terms. Such written notice shall disclose clearly and
11conspicuously, in a retainable form:
12        (i) that unless the consumer cancels the contract it
13    will automatically renew;
14        (ii) a mechanism for cancelling the contract, which
15    shall be offered in a manner in which the consumer
16    commonly interacts with the business; and
17        (iii) the deadline by which the consumer must cancel
18    in order to avoid being charged for a subsequent term.
19    (b-5) A person, firm, partnership, association, or
20corporation that makes an automatic renewal offer or
21continuous service offer online shall provide a toll-free
22telephone number, electronic mail address, a postal address if
23the seller directly bills the consumer, or another
24cost-effective, timely, and easy-to-use mechanism for
25cancellation that shall be described in the notice required in
26subsection (b). A consumer who accepts an automatic renewal or

 

 

SB2764 Engrossed- 4 -LRB103 36659 SPS 66768 b

1continuous service offer online must be allowed to terminate
2the automatic renewal or continuous service exclusively
3online, which may include a termination email formatted and
4provided by the business that a consumer can send to the
5business without additional information, or a link to a
6website or other online service consumers can use to cancel.
7    (c) A person, firm, partnership, association, or
8corporation will not be liable for a violation of this Act or
9the Consumer Fraud and Deceptive Business Practices Act if
10such person, firm, partnership, association, or corporation
11demonstrates that, as part of its routine business practice:
12        (i) it has established and implemented written
13    procedures to comply with this Act and enforces compliance
14    with the procedures;
15        (ii) any failure to comply with this Act is the result
16    of error; and
17        (iii) where an error has caused a failure to comply
18    with this Act, it provides a full refund or credit for all
19    amounts billed to or paid by the consumer from the date of
20    the renewal until the date of the termination of the
21    account, or the date of the subsequent notice of renewal,
22    whichever occurs first.
23(Source: P.A. 102-517, eff. 1-1-22; 103-70, eff. 1-1-24.)