Full Text of HB4450 93rd General Assembly
HB4450enr 93RD GENERAL ASSEMBLY
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| AN ACT concerning business transactions.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Consumer Fraud and Deceptive Business | 5 |
| Practices Act is amended by changing Section 2Z as follows:
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| (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
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| Sec. 2Z. Violations of other Acts. Any person who knowingly | 8 |
| violates
the Automotive Repair Act,
the Home Repair and | 9 |
| Remodeling Act,
the Dance Studio Act,
the Physical Fitness | 10 |
| Services Act,
the Hearing Instrument Consumer Protection Act,
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| the Illinois Union Label Act,
the Job Referral and Job Listing | 12 |
| Services Consumer Protection Act,
the Travel Promotion | 13 |
| Consumer Protection Act,
the Credit Services Organizations | 14 |
| Act,
the Automatic Telephone Dialers Act,
the Pay-Per-Call | 15 |
| Services Consumer Protection Act,
the Telephone Solicitations | 16 |
| Act,
the Illinois Funeral or Burial Funds Act,
the Cemetery | 17 |
| Care Act,
the Safe and Hygienic Bed Act,
the Pre-Need Cemetery | 18 |
| Sales Act,
the High Risk Home Loan Act, subsection (a) or (b) | 19 |
| of Section 3-10 of the
Cigarette Tax Act, subsection
(a) or (b) | 20 |
| of Section 3-10 of the Cigarette Use Tax Act, the Electronic
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| Mail Act, or paragraph (6)
of
subsection (k) of Section 6-305 | 22 |
| of the Illinois Vehicle Code , or the Automatic Contract Renewal | 23 |
| Act commits an unlawful practice within the meaning of this | 24 |
| Act.
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| (Source: P.A. 92-426, eff. 1-1-02; 93-561, eff. 1-1-04.)
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| Section 10. The Automatic Contract Renewal Act is amended | 27 |
| by changing Sections 10, 15, and 20 as follows:
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| (815 ILCS 601/10)
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| Sec. 10. Automatic renewal; requirements. | 30 |
| (a) Any person, firm, partnership, association, or |
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| corporation that sells or offers to sell any products or | 2 |
| services to a consumer pursuant to a contract, where such | 3 |
| contract automatically renews unless the consumer cancels the | 4 |
| contract, shall disclose the automatic renewal clause clearly | 5 |
| and conspicuously in the contract, including the cancellation | 6 |
| procedure.
If a contract is subject
to automatic renewal, the | 7 |
| clause providing for automatic renewal must
appear in the | 8 |
| contract in a clear and conspicuous manner.
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| (b) Any person, firm, partnership, association, or | 10 |
| corporation that sells or offers to sell any products or | 11 |
| services to a consumer pursuant to a contract, where such | 12 |
| contract term is a specified term of 12 months or more, and | 13 |
| where such contract automatically renews for a specified term | 14 |
| of more than one month unless the consumer cancels the | 15 |
| contract, shall notify the consumer in writing of the automatic | 16 |
| renewal. Written notice shall be provided to the consumer no | 17 |
| less than 30 days and no more than 60 days before the | 18 |
| cancellation deadline pursuant to the automatic renewal | 19 |
| clause. Such written notice shall disclose clearly and | 20 |
| conspicuously: | 21 |
| (i) that unless the consumer cancels the contract it | 22 |
| will automatically renew; and | 23 |
| (ii) where the consumer can obtain details of the | 24 |
| automatic renewal provision and cancellation procedure | 25 |
| (for example, by contacting the business at a specified | 26 |
| telephone number or address or by referring to the | 27 |
| contract).
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| (c) A person, firm, partnership, association, or | 29 |
| corporation will not be liable for a violation of this Act or | 30 |
| the Consumer Fraud and Deceptive Business Practices Act if such | 31 |
| person, firm, partnership, association, or corporation | 32 |
| demonstrates that, as part of its routine business practice: | 33 |
| (i) it has established and implemented written | 34 |
| procedures to comply with this Act and enforces compliance | 35 |
| with the procedures; | 36 |
| (ii) any failure to comply with this Act is the result |
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| of error; and | 2 |
| (iii) where an error has caused a failure to comply | 3 |
| with this Act, it provides a full refund or credit for all | 4 |
| amounts billed to or paid by the consumer from the date of | 5 |
| the renewal until the date of the termination of the | 6 |
| account, or the date of the subsequent notice of renewal, | 7 |
| whichever occurs first.
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| (Source: P.A. 91-674, eff. 6-1-00.)
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| (815 ILCS 601/15)
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| Sec. 15. Violation. A violation of this Act constitutes an | 11 |
| unlawful practice under the Consumer Fraud and Deceptive | 12 |
| Business Practices Act
If a contract does not comply with this | 13 |
| Act, the
automatic renewal provisions are not enforceable by a | 14 |
| party who prepared the
contract or directed its preparation .
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| (Source: P.A. 91-674, eff. 6-1-00.)
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| (815 ILCS 601/20)
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| Sec. 20. Applicability. | 18 |
| (a) This Act does not apply to a contract
entered into | 19 |
| before the effective date of this Act.
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| (b) This amendatory Act of the 93rd General Assembly does | 21 |
| not apply to a contract entered into before the effective date | 22 |
| of this amendatory Act of the 93rd General Assembly.
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| (c) This Act does not apply to business-to-business | 24 |
| contracts.
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| (d) This Act does not apply to banks, trust companies, | 26 |
| savings and loan associations, savings banks, or credit unions | 27 |
| licensed or organized under the laws of any state or the United | 28 |
| States, or any foreign bank maintaining a branch or agency | 29 |
| licensed or organized under the laws of any state of the United | 30 |
| States, or any subsidiary or affiliate thereof.
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| (e) This Act does not apply to a contract that is extended | 32 |
| beyond the original term of the contract as the result of the | 33 |
| consumer's initiation of a change in the original contract | 34 |
| terms.
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| (Source: P.A. 91-674, eff. 6-1-00.)
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