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| Public Act 103-0919 | ||||
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AN ACT concerning business. | ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly: | ||||
Section 5. The Automatic Contract Renewal Act is amended | ||||
by changing Section 10 as follows: | ||||
(815 ILCS 601/10) | ||||
Sec. 10. Automatic renewal; requirements. | ||||
(a) Any person, firm, partnership, association, or | ||||
corporation that sells or offers to sell any products or | ||||
services to a consumer pursuant to a contract, where such | ||||
contract automatically renews unless the consumer cancels the | ||||
contract, shall: | ||||
(i) disclose the automatic renewal offer terms clearly | ||||
and conspicuously in the contract before the subscription | ||||
or purchasing agreement is fulfilled and in visual | ||||
proximity, or in the case of an offer conveyed by voice, in | ||||
temporal proximity, to the request for consent to the | ||||
offer; | ||||
(ii) not charge the consumer's credit or debit card or | ||||
other payment mechanism for an automatic renewal service | ||||
without first obtaining the consumer's consent to the | ||||
contract containing the automatic renewal offer terms; | ||||
(iii) provide an acknowledgment that includes the | ||||
automatic renewal offer terms, cancellation policy, and | ||
information regarding how to cancel, which may be | ||
accomplished by linking to a resource that provides | ||
instructions that account for different platforms and | ||
services, in a manner that is capable of being retained by | ||
the consumer; and | ||
(iv) if the offer includes a free gift or trial, | ||
disclose how to cancel the contract, which may be | ||
accomplished by linking to a resource that provides | ||
instructions that account for different platforms and | ||
services, and allow the consumer to cancel before the | ||
consumer pays for the good or services. | ||
(a-5) Any person, firm, partnership, association, or | ||
corporation that sells or offers to sell any products or | ||
services to a consumer pursuant to a contract that includes a | ||
free trial or a promotional period of the product or service | ||
that lasts 15 days or longer, where such contract | ||
automatically renews unless the consumer cancels the contract, | ||
shall notify the consumer during the free trial or the | ||
promotional period no less than 3 days before the cancellation | ||
deadline as described by the automatic renewal offer terms. | ||
The person, firm, partnership, association, or corporation | ||
shall send the notice in a method in which the consumer is | ||
accustomed to interacting with the person, firm, partnership, | ||
association, or corporation. | ||
(b) Any person, firm, partnership, association, or | ||
corporation that sells or offers to sell any products or | ||
services to a consumer pursuant to a contract, where such | ||
contract term is a specified term of 12 months or more, and | ||
where such contract automatically renews for a specified term | ||
of more than one month unless the consumer cancels the | ||
contract, shall notify the consumer in writing of the | ||
automatic renewal. Written notice shall be provided to the | ||
consumer no less than 30 days and no more than 60 days before | ||
the cancellation deadline pursuant to the automatic renewal | ||
offer terms. Such written notice shall disclose clearly and | ||
conspicuously, in a retainable form: | ||
(i) that unless the consumer cancels the contract it | ||
will automatically renew; | ||
(ii) a mechanism for cancelling the contract, which | ||
shall be offered in a manner in which the consumer | ||
commonly interacts with the business; and | ||
(iii) the deadline by which the consumer must cancel | ||
in order to avoid being charged for a subsequent term. | ||
(b-5) A person, firm, partnership, association, or | ||
corporation that makes an automatic renewal offer or | ||
continuous service offer online shall 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 that shall be described in the notice required in | ||
subsection (b). A consumer who accepts an automatic renewal or | ||
continuous service offer online must be allowed to terminate | ||
the automatic renewal or continuous service exclusively | ||
online, which may include a termination email formatted and | ||
provided by the business that a consumer can send to the | ||
business without additional information, or a link to a | ||
website or other online service consumers can use to cancel. | ||
(c) A person, firm, partnership, association, or | ||
corporation will not be liable for a violation of this Act or | ||
the Consumer Fraud and Deceptive Business Practices Act if | ||
such person, firm, partnership, association, or corporation | ||
demonstrates that, as part of its routine business practice: | ||
(i) it has established and implemented written | ||
procedures to comply with this Act and enforces compliance | ||
with the procedures; | ||
(ii) any failure to comply with this Act is the result | ||
of error; and | ||
(iii) where an error has caused a failure to comply | ||
with this Act, it provides a full refund or credit for all | ||
amounts billed to or paid by the consumer from the date of | ||
the renewal until the date of the termination of the | ||
account, or the date of the subsequent notice of renewal, | ||
whichever occurs first. | ||
(Source: P.A. 102-517, eff. 1-1-22; 103-70, eff. 1-1-24.) | ||