Illinois General Assembly - Full Text of HB3955
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Full Text of HB3955  102nd General Assembly




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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 disclose the automatic renewal clause clearly
13and conspicuously in the contract, including the cancellation
15    (b) Any person, firm, partnership, association, or
16corporation that sells or offers to sell any products or
17services to a consumer pursuant to a contract, where such
18contract term is a specified term of 12 months or more, and
19where such contract automatically renews for a specified term
20of more than one month unless the consumer cancels the
21contract, shall notify the consumer in writing of the
22automatic renewal. Written notice shall be provided to the
23consumer no less than 30 days and no more than 60 days before



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1the cancellation deadline pursuant to the automatic renewal
2clause. Such written notice shall disclose clearly and
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).
11    (b-5) A person, firm, partnership, association, or
12corporation that makes an automatic renewal offer or
13continuous service offer online shall provide a toll-free
14telephone number, electronic mail address, a postal address if
15the seller directly bills the consumer, or another
16cost-effective, timely, and easy-to-use mechanism for
17cancellation that shall be described in the notice required in
18subsection (b). A consumer who accepts an automatic renewal or
19continuous service offer online must be allowed to terminate
20the automatic renewal or continuous service exclusively
21online, which may include a termination email formatted and
22provided by the business that a consumer can send to the
23business without additional information.
24    (c) A person, firm, partnership, association, or
25corporation will not be liable for a violation of this Act or
26the Consumer Fraud and Deceptive Business Practices Act if



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1such person, firm, partnership, association, or corporation
2demonstrates 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.
14(Source: P.A. 93-950, eff. 1-1-05.)