SB3562sam001 104TH GENERAL ASSEMBLY

Sen. Michael E. Hastings

Filed: 4/13/2026

10400SB3562sam001 LRB104 20056 SPS 36701 a

AMENDMENT TO SENATE BILL 3562

AMENDMENT NO. ______. Amend Senate Bill 3562 by replacing everything after the enacting clause with the following:

"Section 5. The Automatic Contract Renewal Act is amended by changing Sections 10 and 20 as follows:

(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 using a simple cancellation mechanism in the same medium that the consumer used to consent to the contract containing the automatic renewal offer terms or is accustomed to interacting with the business.

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, before the change takes effect. 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 or other electronic or online medium, including, but not limited to, a mobile application or account portal with which the consumer has an existing account, 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 a fixed duration of the product or service that lasts 15 days or longer, where the end date of the free trial or promotional period is determinable at the time of enrollment, and 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) A person, firm, partnership, association, or corporation that makes an automatic renewal offer or continuous service offer online shall provide the consumer with the ability to cancel or terminate the automatic renewal or continuous service, 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 or continuous service; 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, website, mobile application, customer account portal, 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 online must be allowed to terminate the automatic renewal or continuous service exclusively online and in a way that is straightforward and without taking steps that are not reasonably related or necessary to complete the cancellation. This method of cancellation , 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, a mobile application or account portal with which the consumer has an existing account, or other online service consumers can use to cancel.

(b-15) Nothing in this Act shall prevent a business from presenting to a consumer, during the cancellation process, any other discount, retention benefit, or other information related to the cancellation if the consumer is clearly informed that cancellation may be completed at any time during this process and a direct cancellation mechanism remains prominently available, if applicable.

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) An entity subject to the provisions of subsection (b-5) or (b-10) is in compliance with those subsections if the entity provides:

(1) a hyperlink to an online cancellation process through a website or other online medium, including, but not limited to, a mobile application or account portal with which the consumer has an existing account, 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;

(B) a toll-free telephone number at which the consumer may cancel the contract; or

(C) a simple and easy-to-use electronic cancellation method.

(b-25) 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, shall notify a consumer of any increase in the price of the contract before billing or charging the consumer or the consumer's account at the higher price in accordance with the following:

(1) for a contract with a renewal term of one month or less, notice shall be provided at least 3 days prior to the billing or charging of the consumer or the consumer's account at the higher price; or

(2) for a contract with a renewal term of 6 months or more, notice shall be provided at least 7 days prior to the billing or charging of the consumer or the consumer's account at the higher price.

The notice shall also contain information concerning how the consumer may cancel the contract before the price increase of the contract takes effect and the consumer is billed or charged at the higher price.

(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.)

(815 ILCS 601/20)

Sec. 20. Applicability.

(a) This Act does not apply to a contract entered into before the effective date of this Act.

(b) This amendatory Act of the 93rd General Assembly does not apply to a contract entered into before the effective date of this amendatory Act of the 93rd General Assembly.

(c) This Act does not apply to business-to-business contracts.

(d) This Act does not apply to banks, trust companies, savings and loan associations, savings banks, or credit unions licensed or organized under the laws of any state or the United States, or any foreign bank maintaining a branch or agency licensed or organized under the laws of any state of the United States, or any subsidiary or affiliate thereof.

(e) This Act does not apply to a contract that is extended beyond the original term of the contract as the result of the consumer's initiation of a change in the original contract terms.

(f) This Act does not apply to a contract for the sale of any product or service by a provider, or an affiliate of the provider, that is subject to Article XXII of the Public Utilities Act or any service provided by a business, or an affiliate of the business, that is licensed or regulated by the Federal Communications Commission.

(g) This Act does not apply to a party, or an affiliate of the party, regulated by the Director of the Department of Insurance.

(Source: P.A. 103-70, eff. 1-1-24.)".