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1     AN ACT concerning business transactions.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Consumer Fraud and Deceptive Business
5 Practices Act is amended by changing Section 2Z as follows:
 
6     (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
7     Sec. 2Z. Violations of other Acts. Any person who knowingly
8 violates the Automotive Repair Act, the Home Repair and
9 Remodeling Act, the Dance Studio Act, the Physical Fitness
10 Services Act, the Hearing Instrument Consumer Protection Act,
11 the Illinois Union Label Act, the Job Referral and Job Listing
12 Services Consumer Protection Act, the Travel Promotion
13 Consumer Protection Act, the Credit Services Organizations
14 Act, the Automatic Telephone Dialers Act, the Pay-Per-Call
15 Services Consumer Protection Act, the Telephone Solicitations
16 Act, the Illinois Funeral or Burial Funds Act, the Cemetery
17 Care Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery
18 Sales Act, the High Risk Home Loan Act, subsection (a) or (b)
19 of Section 3-10 of the Cigarette Tax Act, subsection (a) or (b)
20 of Section 3-10 of the Cigarette Use Tax Act, the Electronic
21 Mail Act, or paragraph (6) of subsection (k) of Section 6-305
22 of the Illinois Vehicle Code, or the Automatic Contract Renewal
23 Act commits an unlawful practice within the meaning of this
24 Act.
25 (Source: P.A. 92-426, eff. 1-1-02; 93-561, eff. 1-1-04.)
 
26     Section 10. The Automatic Contract Renewal Act is amended
27 by changing Sections 10, 15, and 20 as follows:
 
28     (815 ILCS 601/10)
29     Sec. 10. Automatic renewal; requirements.
30     (a) Any person, firm, partnership, association, or

 

 

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1 corporation that sells or offers to sell any products or
2 services to a consumer pursuant to a contract, where such
3 contract automatically renews unless the consumer cancels the
4 contract, shall disclose the automatic renewal clause clearly
5 and conspicuously in the contract, including the cancellation
6 procedure. If a contract is subject to automatic renewal, the
7 clause providing for automatic renewal must appear in the
8 contract in a clear and conspicuous manner.
9     (b) Any person, firm, partnership, association, or
10 corporation that sells or offers to sell any products or
11 services to a consumer pursuant to a contract, where such
12 contract term is a specified term of 12 months or more, and
13 where such contract automatically renews for a specified term
14 of more than one month unless the consumer cancels the
15 contract, shall notify the consumer in writing of the automatic
16 renewal. Written notice shall be provided to the consumer no
17 less than 30 days and no more than 60 days before the
18 cancellation deadline pursuant to the automatic renewal
19 clause. Such written notice shall disclose clearly and
20 conspicuously:
21         (i) that unless the consumer cancels the contract it
22     will automatically renew; and
23         (ii) where the consumer can obtain details of the
24     automatic renewal provision and cancellation procedure
25     (for example, by contacting the business at a specified
26     telephone number or address or by referring to the
27     contract).
28     (c) A person, firm, partnership, association, or
29 corporation will not be liable for a violation of this Act or
30 the Consumer Fraud and Deceptive Business Practices Act if such
31 person, firm, partnership, association, or corporation
32 demonstrates that, as part of its routine business practice:
33         (i) it has established and implemented written
34     procedures to comply with this Act and enforces compliance
35     with the procedures;
36         (ii) any failure to comply with this Act is the result

 

 

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1     of error; and
2         (iii) where an error has caused a failure to comply
3     with this Act, it provides a full refund or credit for all
4     amounts billed to or paid by the consumer from the date of
5     the renewal until the date of the termination of the
6     account, or the date of the subsequent notice of renewal,
7     whichever occurs first.
8 (Source: P.A. 91-674, eff. 6-1-00.)
 
9     (815 ILCS 601/15)
10     Sec. 15. Violation. A violation of this Act constitutes an
11 unlawful practice under the Consumer Fraud and Deceptive
12 Business Practices Act If a contract does not comply with this
13 Act, the automatic renewal provisions are not enforceable by a
14 party who prepared the contract or directed its preparation.
15 (Source: P.A. 91-674, eff. 6-1-00.)
 
16     (815 ILCS 601/20)
17     Sec. 20. Applicability.
18     (a) This Act does not apply to a contract entered into
19 before the effective date of this Act.
20     (b) This amendatory Act of the 93rd General Assembly does
21 not apply to a contract entered into before the effective date
22 of this amendatory Act of the 93rd General Assembly.
23     (c) This Act does not apply to business-to-business
24 contracts.
25     (d) This Act does not apply to banks, trust companies,
26 savings and loan associations, savings banks, or credit unions
27 licensed or organized under the laws of any state or the United
28 States, or any foreign bank maintaining a branch or agency
29 licensed or organized under the laws of any state of the United
30 States, or any subsidiary or affiliate thereof.
31     (e) This Act does not apply to a contract that is extended
32 beyond the original term of the contract as the result of the
33 consumer's initiation of a change in the original contract
34 terms.

 

 

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1 (Source: P.A. 91-674, eff. 6-1-00.)