Public Act 098-0362
 
HB0530 EnrolledLRB098 03348 MGM 33363 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Hearing Instrument Consumer Protection Act
is amended by changing Sections 3 and 6 as follows:
 
    (225 ILCS 50/3)  (from Ch. 111, par. 7403)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 3. Definitions. As used in this Act, except as the
context requires otherwise:
    "Department" means the Department of Public Health.
    "Director" means the Director of the Department of Public
Health.
    "License" means a license issued by the State under this
Act to a hearing instrument dispenser.
    "Licensed Audiologist" means a person licensed as an
audiologist under the Illinois Speech-Language Pathology and
Audiology Practice Act.
    "National Board Certified Hearing Instrument Specialist"
means a person who has had at least 2 years in practice as a
licensed hearing instrument dispenser and has been certified
after qualification by examination by the National Board for
Certification in Hearing Instruments Sciences.
    "Licensed physician" or "physician" means a physician
licensed in Illinois to practice medicine in all of its
branches.
    "Trainee" means a person who is licensed to perform the
functions of a hearing instrument dispenser in accordance with
the Department rules and only under the direct supervision of a
hearing instrument dispenser or audiologist who is licensed in
the State.
    "Board" means the Hearing Instrument Consumer Protection
Board.
    "Hearing instrument" or "hearing aid" means any wearable
instrument or device designed for or offered for the purpose of
aiding or compensating for impaired human hearing and that can
provide more than 15 dB full on gain via a 2cc coupler at any
single frequency from 200 through 6000 cycles per second, and
any parts, attachments, or accessories, including ear molds.
"Hearing instrument" or "hearing aid" do not include batteries,
cords, instrument or device designed, intended, or offered for
the purpose of improving a person's hearing and any parts,
attachments, or accessories, including earmold. Batteries,
cords, and individual or group auditory training devices and
any instrument or device used by a public utility in providing
telephone or other communication services are excluded.
    "Practice of fitting, dispensing, or servicing of hearing
instruments" means the measurement of human hearing with an
audiometer, calibrated to the current American National
Standard Institute standards, for the purpose of making
selections, recommendations, adaptions, services, or sales of
hearing instruments including the making of earmolds as a part
of the hearing instrument.
    "Sell" or "sale" means any transfer of title or of the
right to use by lease, bailment, or any other contract,
excluding wholesale transactions with distributors or dealers.
    "Hearing instrument dispenser" means a person who is a
hearing care professional that engages in the selling, practice
of fitting, selecting, recommending, dispensing, or servicing
of hearing instruments or the testing for means of hearing
instrument selection or who advertises or displays a sign or
represents himself or herself as a person who practices the
testing, fitting, selecting, servicing, dispensing, or selling
of hearing instruments.
    "Fund" means the Hearing Instrument Dispenser Examining
and Disciplinary Fund.
    "Hearing Care Professional" means a person who is a
licensed audiologist, a licensed hearing instrument dispenser,
or a licensed physician.
(Source: P.A. 96-846, eff. 6-1-10.)
 
    (225 ILCS 50/6)  (from Ch. 111, par. 7406)
    (Section scheduled to be repealed on January 1, 2016)
    Sec. 6. Mail order and Internet sales. Nothing in this Act
shall prohibit a corporation, partnership, trust, association,
or other organization, maintaining an established business
address, from engaging in the business of selling or offering
for sale hearing instruments at retail by mail or by Internet
to persons 18 years of age or older who have not been examined
by a licensed physician or tested by a licensed hearing
instrument dispenser provided that:
    (a) The organization is registered by the Department prior
to engaging in business in this State and has paid the fee set
forth in this Act.
    (b) The organization files with the Department, prior to
registration and annually thereafter, a Disclosure Statement
containing the following:
        (1) the name under which the organization is doing or
    intends to do business and the name of any affiliated
    company which the organization recommends or will
    recommend to persons as a supplier of goods or services or
    in connection with other business transactions of the
    organization;
        (2) the organization's principal business address and
    the name and address of its agent in this State authorized
    to receive service of process;
        (3) the business form of the organization, whether
    corporate, partnership, or otherwise and the state or other
    sovereign power under which the organization is organized;
        (4) the names of the directors or persons performing
    similar functions and names and addresses of the chief
    executive officer, and the financial, accounting, sales,
    and other principal executive officers, if the
    organization is a corporation, association, or other
    similar entity; of all general partners, if the
    organization is a partnership; and of the owner, if the
    organization is a sole proprietorship, together with a
    statement of the business background during the past 5
    years for each such person;
        (5) a statement as to whether the organization or any
    person identified in the disclosure statement:
            (i) has during the 5 year period immediately
        preceding the date of the disclosure statement been
        convicted of a felony, pleaded nolo contendere to a
        felony charge, or been held liable in a civil action by
        final judgment, if such felony or civil action involved
        fraud, embezzlement, or misappropriation of property,
        and a description thereof; or
            (ii) is subject to any currently effective
        injunctive or restrictive order as a result of a
        proceeding or pending action brought by any government
        agency or department, and a description thereof; or
            (iii) is a defendant in any pending criminal or
        material civil action relating to fraud, embezzlement,
        misappropriation of property or violations of the
        antitrust or trade regulation laws of the United States
        or any state, and a description thereof; or
            (iv) has during the 5 year period immediately
        preceding the date of the disclosure statement had
        entered against such person or organization a final
        judgment in any material civil proceeding, and a
        description thereof; or
            (v) has during the 5 year period immediately
        preceding the date of the disclosure statement been
        adjudicated a bankrupt or reorganized due to
        insolvency or was a principal executive officer or
        general partner of any company that has been
        adjudicated a bankrupt or reorganized due to
        insolvency during such 5 year period, and a description
        thereof;
        (6) the length of time the organization and any
    predecessor of the organization has conducted a business
    dealing with hearing instrument goods or services;
        (7) a financial statement of the organization as of the
    close of the most recent fiscal year of the organization.
    If the financial statement is filed later than 120 days
    following the close of the fiscal year of the organization
    it must be accompanied by a statement of the organization
    of any material changes in the financial condition of the
    organization;
        (8) a general description of the business, including
    without limitation a description of the goods, training
    programs, supervision, advertising, promotion and other
    services provided by the organization;
        (9) a statement of any compensation or other benefit
    given or promised to a public figure arising, in whole or
    in part, from (i) the use of the public figure in the name
    or symbol of the organization or (ii) the endorsement or
    recommendation of the organization by the public figure in
    advertisements;
        (10) a statement setting forth such additional
    information and such comments and explanations relative to
    the information contained in the disclosure statement as
    the organization may desire to present.
    (b-5) If a device being sold does not meet the definition
of a hearing instrument or hearing device as stated in this
Act, the organization shall include a disclaimer in all written
or electronic promotions. The disclaimer shall include the
following language:
        "This is not a hearing instrument or hearing aid as
    defined in the Hearing Instrument Consumer Protection Act,
    but a personal amplifier and not intended to replace a
    properly fitted and calibrated hearing instrument.".
    (c) The organization files with the Department prior to
registration and annually thereafter a statement that it
complies with the Act, the rules issued pursuant to it, and the
regulations of the Federal Food and Drug Administration and the
Federal Trade Commission insofar as they are applicable.
    (d) The organization files with the Department at the time
of registration an irrevocable consent to service of process
authorizing the Department and any of its successors to be
served any notice, process, or pleading in any action or
proceeding against the organization arising out of or in
connection with any violation of this Act. Such service shall
have the effect of conferring personal jurisdiction over such
organization in any court of competent jurisdiction.
    (e) Before dispensing a hearing instrument to a resident of
this State, the organization informs the prospective users that
they may need the following for proper fitting of a hearing
instrument:
        (1) the results of an audiogram performed within the
    past 6 months by a licensed audiologist or a licensed
    hearing instrument dispenser; and
        (2) an earmold impression obtained from the
    prospective user and taken by a licensed hearing instrument
    dispenser.
    (f) The prospective user receives a medical evaluation or
the organization affords the prospective user an opportunity to
waive the medical evaluation requirement of Section 4 of this
Act and the testing requirement of subsection (z) of Section
18, provided that the organization:
        (1) informs the prospective user that the exercise of
    the waiver is not in the user's best health interest;
        (2) does not in any way actively encourage the
    prospective user to waive the medical evaluation or test;
    and
        (3) affords the prospective user the option to sign the
    following statement:
            "I have been advised by .......... (hearing
        instrument dispenser's name) that the Food and Drug
        Administration and the State of Illinois have
        determined that my best interest would be served if I
        had a medical evaluation by a licensed physician,
        preferably a physician who specialized in diseases of
        the ear, before purchasing a hearing instrument; or a
        test by a licensed audiologist or licensed hearing
        instrument dispenser utilizing established procedures
        and instrumentation in the fitting of hearing
        instruments. I do not wish either a medical evaluation
        or test before purchasing a hearing instrument."
    (g) Where a sale, lease, or rental of hearing instruments
is sold or contracted to be sold to a consumer by mail order,
the consumer may void the contract or sale by notifying the
seller within 45 business days following that day on which the
hearing instruments were mailed by the seller to the consumer
and by returning to the seller in its original condition any
hearing instrument delivered to the consumer under the contract
or sale. At the time the hearing instrument is mailed, the
seller shall furnish the consumer with a fully completed
receipt or copy of any contract pertaining to the sale that
contains a "Notice of Cancellation" informing the consumer that
he or she may cancel the sale at any time within 45 business
days and disclosing the date of the mailing and the name,
address, and telephone number of the seller. In immediate
proximity to the space reserved in the contract for the
signature of the consumer, or on the front page of the receipt
if a contract is not used, and in bold face type of a minimum
size of 10 points, there shall be a statement in substantially
the following form:
        "You, the buyer, may cancel this transaction at any
    time prior to midnight of the 45th business day after the
    date of this transaction. See the attached notice of
    cancellation form for an explanation of this right."
    Attached to the receipt or contract shall be a completed
form in duplicate, captioned "NOTICE OF CANCELLATION" which
shall be easily detachable and which shall contain in at least
10 point bold face type the following information and
statements in the same language as that used in the contract:
"NOTICE OF CANCELLATION
enter date of transaction
.........................
(DATE)
          
    YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR
OBLIGATION, WITHIN 45 BUSINESS DAYS FROM THE ABOVE DATE.
    IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY
YOU UNDER THE CONTRACT OR SALE LESS ANY NONREFUNDABLE
RESTOCKING FEE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU
WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY
THE SELLER OF YOUR CANCELLATION NOTICE AND ALL MERCHANDISE
PERTAINING TO THIS TRANSACTION, AND ANY SECURITY INTEREST
ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.
    IF YOU CANCEL, YOU MUST RETURN TO THE SELLER, IN
SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS
DELIVERED TO YOU UNDER THIS CONTRACT OR SALE.
        TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED
    AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER
    WRITTEN NOTICE, OR SEND A TELEGRAM, TO (name of seller), AT
    (address of seller's place of business) AND (seller's
    telephone number) NO LATER THAN MIDNIGHT OF
    ...........(date).
        I HEREBY CANCEL THIS TRANSACTION.
(Date)............
..................
(Buyers Signature)"
    The written "Notice of Cancellation" may be sent by the
consumer to the seller to cancel the contract. The 45-day
period does not commence until the consumer is furnished the
Notice of Cancellation and the address and phone number at
which such notice to the seller can be given.
    If the conditions of this Section are met, the seller must
return to the consumer the amount of any payment made or
consideration given under the contract or for the merchandise
less a nonrefundable restocking fee.
    It is an unlawful practice for a seller to: (1) hold a
consumer responsible for any liability or obligation under any
mail order transaction if the consumer claims not to have
received the merchandise unless the merchandise was sent by
certified mail or other delivery method by which the seller is
provided with proof of delivery; (2) fail, before furnishing
copies of the "Notice of Cancellation" to the consumer, to
complete both copies by entering the name of the seller, the
address of the seller's place of business, the seller's
telephone number, the date of the mailing, and the date, not
earlier than the 45th business day following the date of the
mailing, by which the consumer may give notice of cancellation;
(3) include in any contract or receipt any confession of
judgment or any waiver of any of the rights to which the
consumer is entitled under this Section including specifically
his right to cancel the sale in accordance with the provisions
of this Section; (4) misrepresent in any manner the consumer's
right to cancel; (5) use any undue influence, coercion, or any
other wilful act or representation to interfere with the
consumer's exercise of his rights under this Section; (6) fail
or refuse to honor any valid notice of cancellation and return
of merchandise by a consumer and, within 10 business days after
the receipt of such notice and merchandise pertaining to such
transaction, to (i) refund payments made under the contract or
sale, (ii) return any goods or property traded in, in
substantially as good condition as when received by the person,
(iii) cancel and return any negotiable instrument executed by
the consumer in connection with the contract or sale and take
any action necessary or appropriate to terminate promptly any
security interest created in the transaction; (7) negotiate,
transfer, sell, or assign any note or other evidence of
indebtedness to a finance company or other third party prior to
the 50th business day following the day of the mailing; or (8)
fail to provide the consumer of a hearing instrument with
written information stating the name, address, and telephone
number of the Department and informing the consumer that
complaints regarding hearing instrument goods or services may
be made to the Department.
    (h) The organization employs only licensed hearing
instrument dispensers in the dispensing of hearing instruments
and files with the Department, by January 1 of each year, a
list of all licensed hearing instrument dispensers employed by
it.
(Source: P.A. 89-72, eff. 12-31-95.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.