Bill Text: IL HB3955 | 2021-2022 | 102nd General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Automatic Contract Renewal Act. Provides that a consumer who accepts an automatic renewal or continuous service offer online shall be allowed to terminate the automatic renewal or continuous service exclusively online. Requires a business that makes an automatic renewal offer or continuous service offer online to provide a toll-free telephone number, electronic mail address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0517 [HB3955 Detail]
Download: Illinois-2021-HB3955-Enrolled.html
Bill Title: Amends the Automatic Contract Renewal Act. Provides that a consumer who accepts an automatic renewal or continuous service offer online shall be allowed to terminate the automatic renewal or continuous service exclusively online. Requires a business that makes an automatic renewal offer or continuous service offer online to provide a toll-free telephone number, electronic mail address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2021-08-20 - Public Act . . . . . . . . . 102-0517 [HB3955 Detail]
Download: Illinois-2021-HB3955-Enrolled.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Automatic Contract Renewal Act is amended | ||||||
5 | by changing Section 10 as follows:
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6 | (815 ILCS 601/10)
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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 disclose the automatic renewal clause clearly | ||||||
13 | and conspicuously in the contract, including the cancellation | ||||||
14 | procedure.
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15 | (b) Any person, firm, partnership, association, or | ||||||
16 | corporation that sells or offers to sell any products or | ||||||
17 | services to a consumer pursuant to a contract, where such | ||||||
18 | contract term is a specified term of 12 months or more, and | ||||||
19 | where such contract automatically renews for a specified term | ||||||
20 | of more than one month unless the consumer cancels the | ||||||
21 | contract, shall notify the consumer in writing of the | ||||||
22 | automatic renewal. Written notice shall be provided to the | ||||||
23 | consumer no less than 30 days and no more than 60 days before |
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1 | the cancellation deadline pursuant to the automatic renewal | ||||||
2 | clause. Such written notice shall disclose clearly and | ||||||
3 | conspicuously: | ||||||
4 | (i) that unless the consumer cancels the contract it | ||||||
5 | will automatically renew; and | ||||||
6 | (ii) where the consumer can obtain details of the | ||||||
7 | automatic renewal provision and cancellation procedure | ||||||
8 | (for example, by contacting the business at a specified | ||||||
9 | telephone number or address or by referring to the | ||||||
10 | contract).
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11 | (b-5) A person, firm, partnership, association, or | ||||||
12 | corporation that makes an automatic renewal offer or | ||||||
13 | continuous service offer online shall provide a toll-free | ||||||
14 | telephone number, electronic mail address, a postal address if | ||||||
15 | the seller directly bills the consumer, or another | ||||||
16 | cost-effective, timely, and easy-to-use mechanism for | ||||||
17 | cancellation that shall be described in the notice required in | ||||||
18 | subsection (b). A consumer who accepts an automatic renewal or | ||||||
19 | continuous service offer online must be allowed to terminate | ||||||
20 | the automatic renewal or continuous service exclusively | ||||||
21 | online, which may include a termination email formatted and | ||||||
22 | provided by the business that a consumer can send to the | ||||||
23 | business without additional information. | ||||||
24 | (c) A person, firm, partnership, association, or | ||||||
25 | corporation will not be liable for a violation of this Act or | ||||||
26 | the Consumer Fraud and Deceptive Business Practices Act if |
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1 | such person, firm, partnership, association, or corporation | ||||||
2 | demonstrates that, as part of its routine business practice: | ||||||
3 | (i) it has established and implemented written | ||||||
4 | procedures to comply with this Act and enforces compliance | ||||||
5 | with the procedures; | ||||||
6 | (ii) any failure to comply with this Act is the result | ||||||
7 | of error; and | ||||||
8 | (iii) where an error has caused a failure to comply | ||||||
9 | with this Act, it provides a full refund or credit for all | ||||||
10 | amounts billed to or paid by the consumer from the date of | ||||||
11 | the renewal until the date of the termination of the | ||||||
12 | account, or the date of the subsequent notice of renewal, | ||||||
13 | whichever occurs first.
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14 | (Source: P.A. 93-950, eff. 1-1-05.)
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