Full Text of SB2764 103rd General Assembly
SB2764eng 103RD GENERAL ASSEMBLY | | | SB2764 Engrossed | | LRB103 36659 SPS 66768 b |
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| 1 | | AN ACT concerning business. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Automatic Contract Renewal Act is amended | 5 | | by changing Section 10 as follows: | 6 | | (815 ILCS 601/10) | 7 | | Sec. 10. Automatic renewal; requirements. | 8 | | (a) Any person, firm, partnership, association, or | 9 | | corporation that sells or offers to sell any products or | 10 | | services to a consumer pursuant to a contract, where such | 11 | | contract automatically renews unless the consumer cancels the | 12 | | contract, 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 |
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| 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 | 14 | | corporation that sells or offers to sell any products or | 15 | | services to a consumer pursuant to a contract that includes a | 16 | | free trial or a promotional period of the product or service | 17 | | that lasts 15 days or longer, where such contract | 18 | | automatically renews unless the consumer cancels the contract, | 19 | | shall notify the consumer during the free trial or the | 20 | | promotional period no less than 3 days before the cancellation | 21 | | deadline as described by the automatic renewal offer terms. | 22 | | The person, firm, partnership, association, or corporation | 23 | | shall send the notice in a method in which the consumer is | 24 | | accustomed to interacting with the person, firm, partnership, | 25 | | association, or corporation. | 26 | | (b) Any person, firm, partnership, association, or |
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| 1 | | corporation that sells or offers to sell any products or | 2 | | services to a consumer pursuant to a contract, where such | 3 | | contract term is a specified term of 12 months or more, and | 4 | | where such contract automatically renews for a specified term | 5 | | of more than one month unless the consumer cancels the | 6 | | contract, shall notify the consumer in writing of the | 7 | | automatic renewal. Written notice shall be provided to the | 8 | | consumer no less than 30 days and no more than 60 days before | 9 | | the cancellation deadline pursuant to the automatic renewal | 10 | | offer terms. Such written notice shall disclose clearly and | 11 | | conspicuously, 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 | 20 | | corporation that makes an automatic renewal offer or | 21 | | continuous service offer online shall provide a toll-free | 22 | | telephone number, electronic mail address, a postal address if | 23 | | the seller directly bills the consumer, or another | 24 | | cost-effective, timely, and easy-to-use mechanism for | 25 | | cancellation that shall be described in the notice required in | 26 | | subsection (b). A consumer who accepts an automatic renewal or |
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| 1 | | continuous service offer online must be allowed to terminate | 2 | | the automatic renewal or continuous service exclusively | 3 | | online, which may include a termination email formatted and | 4 | | provided by the business that a consumer can send to the | 5 | | business without additional information, or a link to a | 6 | | website or other online service consumers can use to cancel. | 7 | | (c) A person, firm, partnership, association, or | 8 | | corporation will not be liable for a violation of this Act or | 9 | | the Consumer Fraud and Deceptive Business Practices Act if | 10 | | such person, firm, partnership, association, or corporation | 11 | | demonstrates 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 .) |
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