HB2338ham002 104TH GENERAL ASSEMBLY

Rep. Rita Mayfield

Filed: 3/11/2025

10400HB2338ham002 LRB104 11924 SPS 23111 a

AMENDMENT TO HOUSE BILL 2338

AMENDMENT NO. ______. Amend House Bill 2338 by replacing everything after the enacting clause with the following:

"Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2HHHH as follows:

(815 ILCS 505/2HHHH new)

Sec. 2HHHH. Warranty disclosures for third-party motor vehicle warranties.

(a) As used in this Section, "third-party motor vehicle warranty" means an additional warranty, extended service contract, or vehicle protection plan provided by an entity that is not the manufacturer of a vehicle.

(b) A motor vehicle dealer that sells or offers for sale a third-party motor vehicle warranty shall, upon the request of the consumer, provide to the consumer:

(1) a copy of the third-party motor vehicle warranty contract; and

(2) a written disclosure provided by the third-party motor vehicle warranty provider summarizing all costs that the consumer may be responsible for under the third-party motor vehicle warranty, including, but not limited to:

(A) any deductibles, co-pays, or service fees for a covered repair;

(B) any maximum coverage limits or caps on reimbursements;

(C) any costs or services that are not covered that may result in out-of-pocket expenses; and

(D) a statement clarifying that all claim approvals and coverage determinations are made solely by the third-party motor vehicle warranty provider, not the motor vehicle dealer.

(c) A motor vehicle dealer shall be deemed to have satisfied the requirements of subsection (b) if the dealer provides the consumer:

(1) a completed Federal Trade Commission buyer's guide, as required under 16 CFR 455; and

(2) upon request of the consumer, a copy of the third-party motor vehicle warranty contract and a written disclosure that satisfies the requirements of paragraph (2) of subsection (b).

(d) A motor vehicle dealer does not violate this Section if:

(1) the third-party motor vehicle warranty provider denies a claim made under the third-party motor vehicle warranty; or

(2) the third-party motor vehicle warranty provider makes any errors, omissions, or changes in its description of the coverage terms, costs, or conditions of the third-party motor vehicle warranty.

(e) A violation of this Section constitutes an unlawful practice within the meaning of this Act.".