Bill Text: IL SB2764 | 2023-2024 | 103rd General Assembly | Engrossed


Bill Title: Amends the Automatic Contract Renewal Act. Provides that 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 gift or a trial 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 no less than 2 weeks before the cancellation deadline as described by the automatic renewal offer terms. Provides that if the person, firm, partnership, association, or corporation has the consumer's email address, this notice shall be sent by email.

Spectrum: Partisan Bill (Democrat 22-0)

Status: (Engrossed) 2024-04-30 - Do Pass / Short Debate Consumer Protection Committee; 006-002-000 [SB2764 Detail]

Download: Illinois-2023-SB2764-Engrossed.html

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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

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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
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

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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

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