Full Text of HB5211 97th General Assembly
HB5211 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5211 Introduced 2/8/2012, by Rep. Kelly Burke SYNOPSIS AS INTRODUCED: |
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Amends the Consumer Fraud and Deceptive Business Practices Act concerning product and services charges billed on telephone bills. Provides that a third-party vendor shall not bill a consumer for goods or services that will appear as a charge on a consumer's telephone bill. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 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 2HHH as follows: | 6 | | (815 ILCS 505/2HHH)
| 7 | | Sec. 2HHH. Product Authorization and verification for | 8 | | product and service charges to be billed on a telephone bill | 9 | | prohibited . | 10 | | (a) Definitions.
For purposes of this Section: | 11 | | "Billing agent" means a person that submits charges for | 12 | | services or goods to a telecommunications carrier on behalf of | 13 | | a third-party vendor. | 14 | | "Third-party vendor" means an entity not affiliated with a | 15 | | telecommunications carrier that sells services or goods to a | 16 | | consumer. | 17 | | "Telecommunications carrier" has the same meaning as | 18 | | defined in Section 13-202 of the Public Utilities Act. | 19 | | (b) A third-party vendor shall not bill, directly or | 20 | | through an intermediary, a consumer for goods or services that | 21 | | will appear as a charge on a consumer's telephone bill. | 22 | | (c) A billing agent, on behalf of a third-party vendor, | 23 | | shall not submit, directly or through an intermediary, a charge |
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| 1 | | to a telecommunications carrier for goods or services that will | 2 | | appear as a charge on a consumer's telephone bill. | 3 | | (d) Any person who violates this Section commits an | 4 | | unlawful practice within the meaning of this Act. | 5 | | (e) This Section does not apply to the provision of | 6 | | services and products by a telecommunications carrier subject | 7 | | to the provisions of Section 13-903 of the Public Utilities | 8 | | Act, by a telecommunications carrier's affiliates, or an | 9 | | affiliated cable or video provider, as that term is defined in | 10 | | Section 22-501 of the Public Utilities Act, or by a provider of | 11 | | public mobile services, as defined in Section 13-214 of the | 12 | | Public Utilities Act. | 13 | | "Billing agent" means any entity that submits charges to | 14 | | the billing carrier on behalf of itself or any service | 15 | | provider. | 16 | | "Billing carrier" means any telecommunications carrier, as | 17 | | defined in Section 13-202 of the Public Utilities Act, that | 18 | | issues a bill directly to a customer for any product or service | 19 | | not provided by a telecommunications carrier. | 20 | | "Service provider" means any entity that offers a product | 21 | | or service to a consumer and that directly or indirectly | 22 | | charges to or collects from a consumer's bill received from a | 23 | | billing carrier an amount for the product or service. | 24 | | (b) This Section does not apply to the provision of | 25 | | services and products by a telecommunications carrier subject | 26 | | to the provisions of Section 13-903 of the Public Utilities |
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| 1 | | Act, by a telecommunications carrier's affiliates, or an | 2 | | affiliated cable or video provider, as that term is defined in | 3 | | Section 22-501 of the Public Utilities Act, or by a provider of | 4 | | public mobile services, as defined in Section 13-214 of the | 5 | | Public Utilities Act. | 6 | | (c) Requirements for submitting charges. | 7 | | (1) A service provider or billing agent may submit | 8 | | charges for a product or service to be billed on a | 9 | | consumer's telephone bill on or after the effective date of | 10 | | this amendatory Act of the 96th General Assembly only if: | 11 | | (A) the service provider offering the product or | 12 | | service has clearly and conspicuously disclosed all | 13 | | material terms and conditions of the product or service | 14 | | being offered, including, but not limited to, all | 15 | | charges; and the fact that the charges for the product | 16 | | or service shall appear on the consumer's telephone | 17 | | bill; | 18 | | (B) after the clear and conspicuous disclosure of | 19 | | all material terms and conditions as described in | 20 | | paragraph (A) of this item (1), the consumer has | 21 | | expressly consented to obtain the product or service | 22 | | offered and to have the charges appear on the | 23 | | consumer's telephone bill and the consent has been | 24 | | verified as provided in item (2) of this subsection | 25 | | (c); | 26 | | (C) the service provider offering the product or |
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| 1 | | service or any billing agent for the service provider | 2 | | has provided the consumer with a toll-free telephone | 3 | | number the consumer may call and an address to which | 4 | | the consumer may write to resolve any billing dispute | 5 | | and to answer questions; and | 6 | | (D) the service provider offering the product or | 7 | | service or the billing agent has taken effective steps | 8 | | to determine that the consumer who purportedly | 9 | | consented to obtain the product or service offered is | 10 | | authorized to incur charges for the telephone number to | 11 | | be billed. | 12 | | (2) The consumer consent required by item (1) of this | 13 | | subsection (c) must be verified by the service provider | 14 | | offering the product or service before any charges are | 15 | | submitted for billing on a consumer's telephone bill. A | 16 | | record of the consumer consent and verification must be | 17 | | maintained by the service provider offering the product or | 18 | | service for a period of at least 24 months immediately | 19 | | after the consent and verification have been obtained. The | 20 | | method of obtaining consumer consent and verification must | 21 | | include one or more of the following: | 22 | | (A) A writing signed and dated by the consumer to | 23 | | be billed that clearly and conspicuously discloses the | 24 | | material terms and conditions of the product or service | 25 | | being offered in accordance with paragraph (A) of item | 26 | | (1) of this subsection (c) and clearly and |
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| 1 | | conspicuously states that the consumer expressly | 2 | | consents to be billed in accordance with paragraph (B) | 3 | | of item (1) of this subsection (c) as follows: | 4 | | (i) if the writing is in electronic form, then | 5 | | it shall contain the consumer disclosures required | 6 | | by Section 101(c) of the federal Electronic | 7 | | Signatures in Global and National Commerce Act; | 8 | | and | 9 | | (ii) the writing shall be a separate document | 10 | | or easily separable document or located on a | 11 | | separate screen or webpage containing only the | 12 | | disclosures and consent described in item (1) of | 13 | | this subsection (c). | 14 | | (B) Third party verification by an independent | 15 | | third party that: | 16 | | (i) clearly and conspicuously discloses to the | 17 | | consumer to be billed all of the information | 18 | | required by paragraph (A) of item (1) of this | 19 | | subsection (c); | 20 | | (ii) operates from a facility physically | 21 | | separate from that of the service provider | 22 | | offering the product or service; | 23 | | (iii) is not directly or indirectly managed, | 24 | | controlled, directed, or owned wholly or in part by | 25 | | the service provider offering the product or | 26 | | service; |
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| 1 | | (iv) does not derive commissions or | 2 | | compensation based upon the number of sales | 3 | | confirmed; | 4 | | (v) tape records the entire verification | 5 | | process, with prior consent of the consumer to be | 6 | | billed; and | 7 | | (vi) obtains confirmation from the consumer to | 8 | | be billed that he or she authorized the purchase of | 9 | | the offered good or service. | 10 | | (C) All verifications must be conducted in the same | 11 | | language that was used in the underlying sales | 12 | | transaction. | 13 | | (3) Unless verification is required by federal law or | 14 | | rules implementing federal law, item (2) of this subsection | 15 | | (c) does not apply to customer-initiated transactions with | 16 | | a certificated telecommunications carrier for which the | 17 | | service provider has the appropriate documentation. | 18 | | (4) This Section does not apply to message | 19 | | telecommunications service charges that are initiated by | 20 | | dialing 1+, 0+, 0-, 1010XXX, or collect calls and charges | 21 | | for video services if the service provider has the | 22 | | necessary records to establish the billing for the call or | 23 | | service. | 24 | | (d) Records of disputed charges. | 25 | | (1) Every service provider or billing agent shall | 26 | | maintain records of every disputed charge for a product or |
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| 1 | | service placed on a consumer's bill. | 2 | | (2) The record required under this subsection (d) shall | 3 | | contain for every disputed charge all of the following: | 4 | | (A) any affected telephone numbers and, if | 5 | | available, addresses; | 6 | | (B) the date the consumer requested that the | 7 | | disputed charge be removed from the consumer's bill; | 8 | | (C) the date the disputed charge was removed from | 9 | | the consumer's telephone bill; and | 10 | | (D) the date action was taken to refund or credit | 11 | | to the consumer any money that the consumer paid for | 12 | | the disputed charges. | 13 | | (3) The record required by this subsection (d) shall be | 14 | | maintained for at least 24 months. | 15 | | (e) Billing agents shall take reasonable steps designed to | 16 | | ensure that service providers on whose behalf they submit | 17 | | charges to a billing carrier comply with the requirements of | 18 | | this Section. | 19 | | (f) Any service provider or billing agent who violates this | 20 | | Section commits an unlawful practice within the meaning of this | 21 | | Act.
| 22 | | (Source: P.A. 96-827, eff. 11-30-09.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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