Bill Text: IL HB5138 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Automatic Contract Renewal Act. Provides that the Act applies to contracts with a term of 6 months or more rather than a term of 12 months or more.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5138 Detail]

Download: Illinois-2019-HB5138-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5138 Introduced , by Rep. Mary Edly-Allen SYNOPSIS AS INTRODUCED:
815 ILCS 601/10
Amends the Automatic Contract Renewal Act. Provides that the Act applies to contracts with a term of 6 months or more rather than a term of 12 months or more.
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A BILL FOR
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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 disclose the automatic renewal clause clearly
and conspicuously in the contract, including the cancellation
procedure.
(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 6 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

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cancellation deadline pursuant to the automatic renewal
clause. Such written notice shall disclose clearly and
conspicuously:
(i) that unless the consumer cancels the contract it
will automatically renew; and
(ii) where the consumer can obtain details of the
automatic renewal provision and cancellation procedure
(for example, by contacting the business at a specified
telephone number or address or by referring to the
contract).
(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.

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(Source: P.A. 93-950, eff. 1-1-05.)