SB1486sam001 104TH GENERAL ASSEMBLY

Sen. Omar Aquino

Filed: 3/14/2025

10400SB1486sam001 LRB104 11472 SPS 24006 a

AMENDMENT TO SENATE BILL 1486

AMENDMENT NO. ______. Amend Senate Bill 1486 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Junk Fee Ban Act.

Section 5. Definitions. As used in this Act:

"Ancillary good or service" means any additional merchandise offered to a consumer as part of the same transaction.

"Advertisement" means a notice in any printed material, television, Internet, email, text message, mobile or computer application, or any other similar physical, electronic, or digital communication regarding the sale of a consumer good or service.

"Bar" or "tavern" means an establishment that is devoted to the serving of alcoholic beverages for consumption by guests on the premises and that derives no more than 50% of its gross revenue from the sale of food consumed on the premises, including, but not limited to, bars, taverns, nightclubs, cocktail lounges, adult entertainment facilities, and cabarets.

"Consumer goods or services" means goods and services that are used or bought for use primarily for personal, family, or household purposes.

"Display price" means the displayed price of a consumer good or service provided to the consumer within the retail mercantile establishment's physical location or by Internet, email, text message, mobile or computer application, or any other similar physical, electronic, or digital communication.

"Food service establishment" means a bar, tavern, or restaurant.

"Interchange fee" means a fee that a financial institution, payment processor, credit card payment network, or other person or entity charges a person, retail mercantile establishment, or food service establishment when a consumer uses a card, note, plate, coupon book, credit, or similar device to purchase a consumer product or service.

"Person" means an individual, natural person, public or private corporation, government, partnership, unincorporated association, or other entity. "Person" does not include a food service establishment or a retail mercantile establishment.

"Pricing information" means any information relating to an amount a consumer may pay as part of a transaction.

"Restaurant" means any business that is primarily engaged in the sale of ready-to-eat food for immediate consumption. For the purpose of this definition, "primarily engaged" means having sales of ready-to-eat food for immediate consumption comprising at least 51% of the total sales, excluding the sale of liquor.

"Retail mercantile establishment" means a business that provides consumer goods and services to consumers at retail and generates occupation or use tax revenue. "Retail mercantile establishment" does not include a food service establishment.

"Shipping charges" means the fees or charges that reasonably reflect the amount to be incurred to send goods to a consumer through the mail, including private mail services.

"Total price" means the maximum total of all fees or charges a consumer shall pay for a good or service and any mandatory ancillary good or service. "Total price" does not include shipping charges or taxes, gratuities, interchange fees, discounts regulated pursuant to the Sale Price Ad Act, or fees collected and passed on to a quasi-governmental entity, including any assessment fees associated with a government created special district.

Section 10. Disclosure of mandatory fees required. It is an unlawful practice for any person to advertise, display, or offer a price for a good or service that does not include all mandatory fees or charges other than:

(1) taxes or fees imposed by a government entity on the transaction; or

(2) shipping charges that will be reasonably and actually incurred to ship the physical good or product to the consumer.

Section 15. Financial institution; exemption.

(a) As used in this Section, "financial institution" means any person or entity that is certified, permitted, approved, chartered, registered, licensed, or otherwise authorized to engage in any profession, trade, occupation, or industry by the Department of Financial and Professional Regulation, Division of Banking or Division of Financial Institutions.

(b) A financial entity that is required to provide disclosures in compliance with any of the following federal or State laws, and any rules or regulations adopted under those laws, is exempt from the requirements of Section 10 for purposes of that financial transaction:

(1) the federal Truth in Savings Act, as amended (12 U.S.C. Sec. 4301 et seq.);

(2) the federal Electronic Fund Transfer Act, as amended (15 U.S.C. Sec. 1693 et seq.);

(3) Section 19 of the Federal Reserve Act, as amended (12 U.S.C. Sec. 461 et seq.);

(4) the federal Truth in Lending Act, as amended (15 U.S.C. Sec. 1601 et seq.);

(5) the federal Real Estate Settlement Procedures Act, as amended (12 U.S.C. Sec. 2601 et seq.);

(6) the federal Home Ownership and Equity Protection Act (15 U.S.C. Sec. 1639);

(8) the Consumer Installment Loan Act;

(9) the Consumer Legal Funding Act;

(10) the Interest Act;

(11) the Motor Vehicle Retail Installment Sales Act;

(12) the Retail Installment Sales Act;

(13) the Payday Loan Reform Act;

(14) the High Risk Home Loan Act;

(13) the Pawnbroker Regulation Act of 2023;

(14) the Residential Mortgage Licensing Act of 1987;

(15) the Residential Real Property Disclosure Act; and

(16) the Student Loan Servicing Rights Act.

Section 20. Retail mercantile establishments; disclosure of total price. A retail mercantile establishment is not required to provide the total price in the display price of a consumer good or service. A retail mercantile establishment shall provide notice of a consumer fee or charge prior to the purchase of the food or beverages. A retail mercantile establishment may use any reasonable method available to provide notice of the total price, including, but not limited to, the following commercial channels:

(1) on a screen, monitor, or other display at the point of sale;

(2) a website, Internet, email, text message, mobile or computer application, or any other electronic or digital communication;

(3) in-store consumer promotions, advertisement, or any other similar display;

(4) a membership, loyalty, or reward program or any other similar program; or

(5) any other reasonable means available to the retail mercantile establishment.

Section 25. Food service establishments; disclosure of total price. A food service establishment is not required to provide the total price within the display price of food or beverages. A food service establishment shall provide notice of a consumer fee or charge prior to the purchase of the food or beverages. A food service establishment may use any reasonable method available to provide notice of the total price, including, but not limited to, the following commercial channels:

(1) at the establishment's premises on a menu, on a tabletop or countertop display, or through posted signage;

(2) on the establishment's website where food and beverage prices are advertised;

(3) on a screen, monitor, or other interactive display;

(4) email, text message, mobile or computer application, or any other electronic or digital communication;

(5) in-store consumer promotions, advertisement, or any other similar display;

(6) membership, loyalty, or reward program or any other similar program; or

(7) any other reasonable means available to the food service establishment.

Section 30. Limitations.

(a) Nothing in this Act shall be construed to limit, regulate, or prohibit a retail mercantile establishment's or food establishment's ability to set prices for consumer goods or services.

(b) It is not a violation of this Act for a person to advertise, display, or offer the current bid in an ongoing auction, provided that the bid discloses clearly and conspicuously all amounts that the buyer would be required to pay if the bid was accepted.

(c) The requirements of this Act do not apply to:

(1) a wholesale club that sells consumer goods or services through a membership model;

(2) a rental company that excludes from the advertised, displayed, or offered price of a rental vehicle charges that are disclosed to the consumer in compliance with Section 6-305 of the Illinois Vehicle Code;

(3) an air carrier that provides air transportation, as those terms are used in 49 U.S.C. 41713;

(4) a person that provides broadband or satellite Internet access service on its own or as part of a bundle in compliance with the broadband consumer label requirements under 47 CFR 8.1(a).

Section 35. Interaction with other laws.

(a) Nothing in this Act alters any federal law or regulation.

(b) Nothing in this Act shall infringe or impede on any right or remedy available under State law or rule.

Section 40. Enforcement under the Consumer Fraud and Deceptive Business Practices Act. The Attorney General may enforce violations of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by that Act shall be available to the Attorney General for the enforcement of this Act.

Section 45. Home rule. The disclosure of the total price of a consumer good or service is an exclusive power and function of the State. A home rule unit may not regulate the disclosure of total prices by retail mercantile establishments or food service establishments. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

Section 90. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2HHHH as follows:

(815 ILCS 505/2HHHH new)

Sec. 2HHHH. Violations of the Junk Fee Ban Act. A person who violates the Junk Fee Ban Act commits an unlawful practice within the meaning of this Act.".