SB2311 102ND GENERAL ASSEMBLY

LRB102 16371 JLS 21758 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2311

Introduced 2/26/2021, by Sen. Sara Feigenholtz

SYNOPSIS AS INTRODUCED:

815 ILCS 505/2WWW new

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides for the regulation of payments for software applications and purchases. Prohibits a proprietor of a digital application distribution platform from requiring a developer to use an in-application payment system as the exclusive mode of accepting payment from a user to download a software application or purchase a digital or physical product. Prohibits retaliation against a developer that chooses alternative application stores or payment systems. Defines terms.

FISCAL NOTE ACT MAY APPLY

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 Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2WWW as follows:

(815 ILCS 505/2WWW new)

Sec. 2WWW. Software applications; in-application payment; prohibitions.

(a) As used in this Section:

"Developer" means a creator of a software application made available for download by a user through a digital application distribution platform or other digital distribution platform.

"Digital application distribution platform" means a digital distribution platform for applications and services provided to a user on general-purpose hardware, including a mobile phone, smartphone, tablet, personal computer, and other general-purpose devices connected to the Internet.

"In-application payment system" means an application, service, or user interface used to process a payment from a user to a developer for a software application and digital and physical product distributed through a software application.

"Special-purpose digital application distribution platform" means a digital distribution platform for single or specialized categories of applications, software, and services provided to a user on special-purpose hardware, including a gaming console, music player, and other special-purpose devices connected to the Internet.

(b) A proprietor of a digital application distribution platform for which cumulative gross receipts from sales on the digital application distribution platform to residents of this State exceed $10,000,000 in the previous or current calendar year may not:

(1) Require a developer to use an in-application payment system as the exclusive mode of accepting payment from a user to download a software application or purchase a digital or physical product through a software application.

(2) Retaliate against a developer for choosing to use an alternative application store or in-application payment system.

(c) An agreement that violates this Section is unenforceable and constitutes an unlawful practice within the meaning of this Act.

(d) This Section does not apply to a proprietor of a special-purpose digital application distribution platform.

(e) The Attorney General shall receive complaints and investigate violations of this Section and may bring an action as provided in this Act to obtain the legal or equitable relief on behalf of an individual aggrieved by the violation.