SB3562 104TH GENERAL ASSEMBLY

LRB104 20056 SPS 33507 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3562

Introduced 2/5/2026, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

815 ILCS 601/5
815 ILCS 601/10

Amends the Automatic Contract Renewal Act. Provides that any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract automatically renews, shall provide the consumer with the option to cancel the contract, at any time, using a simple cancellation mechanism in the same medium that the consumer used to consent to the contract. Provides that an entity shall provide a clear and conspicuous notice, in a manner that may be retained by the consumer, of any material change to the terms of a contract containing an automatic renewal offer at least 3 days prior to the change to the terms. Sets forth additional requirements concerning the cancellation of automatic renewal offers, continuous service offers, and free trial or promotional period offers entered into online, including requiring an entity to provide a one-step online cancellation link. Makes other changes.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Automatic Contract Renewal Act is amended by changing Sections 5 and 10 as follows:

(815 ILCS 601/5)

Sec. 5. Definitions. In this Act:

"Automatic renewal offer terms" means the following clear and conspicuous disclosures:

(1) that the paid subscription or purchasing agreement will continue until the consumer cancels;

(2) the timeframe in which the consumer must cancel in order to avoid being charged for a subsequent term;

(3) the recurring charges that will be charged to the consumer's credit or debit card or payment account with a third party as part of the automatic renewal contract, and that the amount of the charge may change, if that is the case, and the amount to which the charge will change, if known;

(4) the length of the automatic renewal term or that the service is continuous, unless the length of the term is chosen by the consumer; and

(5) the minimum purchase obligation, if any.

"Clear and conspicuous" means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. In the case of an audio disclosure, "clear and conspicuous" means in a volume and cadence sufficient to be readily audible and understandable.

"Contract" means a written agreement between 2 or more parties.

"One-step online cancellation" means an online method of cancellation that does not require the consumer to take additional actions that obstruct or delay the consumer's ability to immediately terminate an automatic renewal contract or continuous service offer.

"Parties" includes individuals and other legal entities, but does not include the federal government, this State or another state, or a unit of local government.

(Source: P.A. 102-558, eff. 8-20-21; 103-70, eff. 1-1-24.)

(815 ILCS 601/10)

Sec. 10. Automatic renewal; requirements.

(a) Any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract automatically renews unless the consumer cancels the contract, shall:

(i) disclose the automatic renewal offer terms clearly and conspicuously in the contract before the subscription or purchasing agreement is fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal proximity, to the request for consent to the offer;

(ii) not charge the consumer's credit or debit card or other payment mechanism for an automatic renewal service without first obtaining the consumer's consent to the contract containing the automatic renewal offer terms;

(iii) provide an acknowledgment that includes the automatic renewal offer terms, cancellation policy, and information regarding how to cancel, which may be accomplished by linking to a resource that provides instructions that account for different platforms and services, in a manner that is capable of being retained by the consumer; and

(iv) if the offer includes a free gift or trial, disclose how to cancel the contract, which may be accomplished by linking to a resource that provides instructions that account for different platforms and services, and allow the consumer to cancel before the consumer pays for the good or services; and .

(v) provide the consumer with the option to cancel the contract, at any time, using a simple cancellation mechanism in the same medium that the consumer used to consent to the contract containing the automatic renewal offer terms.

An entity subject to this subsection shall provide a clear and conspicuous notice, in a manner that may be retained by the consumer, of any material change to the terms of the contract, including any price increase, at least 3 days prior to the change to the terms. The notice shall contain information concerning how to cancel the contract. If the notice is sent electronically, the notice shall include either a hyperlink that directs the consumer to a webpage containing the cancellation process or another reasonably accessible electronic method that directs the consumer to the cancellation process if no webpage exists.

(a-5) Any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract that includes a free trial or a promotional period of the product or service that lasts 15 days or longer, where such contract automatically renews unless the consumer cancels the contract, shall notify the consumer during the free trial or the promotional period no less than 3 days before the cancellation deadline as described by the automatic renewal offer terms. The person, firm, partnership, association, or corporation shall send the notice in a method in which the consumer is accustomed to interacting with the person, firm, partnership, association, or corporation.

(b) Any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract term is a specified term of 12 months or more, and where such contract automatically renews for a specified term of more than one month unless the consumer cancels the contract, shall notify the consumer in writing of the automatic renewal. Written notice shall be provided to the consumer no less than 30 days and no more than 60 days before the cancellation deadline pursuant to the automatic renewal offer terms. Such written notice shall disclose clearly and conspicuously, in a retainable form:

(i) that unless the consumer cancels the contract it will automatically renew;

(ii) a mechanism for cancelling the contract, which shall be offered in a manner in which the consumer commonly interacts with the business; and

(iii) the deadline by which the consumer must cancel in order to avoid being charged for a subsequent term.

(b-5) Any A person, firm, partnership, association, or corporation that makes an automatic renewal offer, or continuous service offer, or free trial or promotional period offer online shall provide the consumer with the ability to cancel or terminate the automatic renewal, continuous service, or free trial or promotional period, at any time, using a simple, easy-to-use cancellation mechanism, which shall be available in:

(1) the same medium that the consumer used to consent to the offer and resulted in the activation of the automatic renewal contract, continuous service, or free trial or promotional period; or

(2) the same medium in which the consumer is accustomed to interacting with the business, including, but not limited to, in person or by a toll-free telephone number, electronic mail address, or a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation that shall be described in the notice required in subsection (b).

(b-10) Notwithstanding the provisions of subsection (b-5), a A consumer who accepts an automatic renewal, or continuous service offer, or free trial or promotional period offer online must be allowed to terminate the automatic renewal, or continuous service, or free trial or promotional period exclusively online, and without engaging in any additional steps that obstruct or delay the consumer's ability to cancel immediately, which may include a termination email formatted and provided by the business that a consumer can send to the business without additional information, or a link to a website or other online service consumers can use to cancel.

(b-15) An entity subject to the provisions of subsection (b-5) or (b-10) may comply with those subsections if the entity provides:

(1) a hyperlink to a one-step online cancellation process through a website or other online medium, or through an electronic communication; or

(2) one of the following means if the consumer consented to the automatic renewal contract offer through means other than online:

(A) a physical location where the consumer regularly uses any goods or services that are subject to the automatic renewal contract and where the consumer may cancel the contract; or

(B) a toll-free telephone number.

Notwithstanding the requirements set forth in this subsection, if a consumer requests to cancel the contract, an entity may provide a discount offer, retention benefit, or other consumer benefit or inform the consumer of the effect of the cancellation, provided that the consumer remains able to terminate the automatic renewal contract.

An entity may require a consumer to enter account information or digitally authenticate the consumer's identity before terminating the contract online if the consumer has an account with the business. A consumer who is unwilling or unable to enter account information or digitally authenticate the consumer's identity before termination of the contract online shall not be prevented from terminating the contract offline using another method.

(b-20) It is a violation of this Act for any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract automatically renews unless the consumer terminates the contract, to charge the consumer or the consumer's account following an increase in price, or a price higher than what was disclosed in the contract's automatic renewal offer terms, without either:

(1) obtaining the consumer's consent to the increased price before the increase in price occurs; or

(2) allowing the consumer to cancel the contract anytime within at least 7 days after the charge is assessed to the consumer or the consumer's account and refunding the consumer in the amount equivalent to the price of the remaining term of the service, at the time of the cancellation, on a pro rata basis.

(c) A person, firm, partnership, association, or corporation will not be liable for a violation of this Act or the Consumer Fraud and Deceptive Business Practices Act if such person, firm, partnership, association, or corporation demonstrates that, as part of its routine business practice:

(i) it has established and implemented written procedures to comply with this Act and enforces compliance with the procedures;

(ii) any failure to comply with this Act is the result of error; and

(iii) where an error has caused a failure to comply with this Act, it provides a full refund or credit for all amounts billed to or paid by the consumer from the date of the renewal until the date of the termination of the account, or the date of the subsequent notice of renewal, whichever occurs first.

(Source: P.A. 102-517, eff. 1-1-22; 103-70, eff. 1-1-24; 103-919, eff. 1-1-25.)