State of Illinois
2019 and 2020


Introduced 2/18/2020, by Rep. Mary Edly-Allen


815 ILCS 601/10

    Amends the Automatic Contract Renewal Act. Provides that the Act applies to contracts with a term of 6 months or more rather than a term of 12 months or more.

LRB101 19333 JLS 68802 b





HB5138LRB101 19333 JLS 68802 b

1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Automatic Contract Renewal Act is amended by
5changing Section 10 as follows:
6    (815 ILCS 601/10)
7    Sec. 10. Automatic renewal; requirements.
8    (a) Any person, firm, partnership, association, or
9corporation that sells or offers to sell any products or
10services to a consumer pursuant to a contract, where such
11contract automatically renews unless the consumer cancels the
12contract, shall disclose the automatic renewal clause clearly
13and conspicuously in the contract, including the cancellation
15    (b) Any person, firm, partnership, association, or
16corporation that sells or offers to sell any products or
17services to a consumer pursuant to a contract, where such
18contract term is a specified term of 6 12 months or more, and
19where such contract automatically renews for a specified term
20of more than one month unless the consumer cancels the
21contract, shall notify the consumer in writing of the automatic
22renewal. Written notice shall be provided to the consumer no
23less than 30 days and no more than 60 days before the



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1cancellation deadline pursuant to the automatic renewal
2clause. Such written notice shall disclose clearly and
4        (i) that unless the consumer cancels the contract it
5    will automatically renew; and
6        (ii) where the consumer can obtain details of the
7    automatic renewal provision and cancellation procedure
8    (for example, by contacting the business at a specified
9    telephone number or address or by referring to the
10    contract).
11    (c) A person, firm, partnership, association, or
12corporation will not be liable for a violation of this Act or
13the Consumer Fraud and Deceptive Business Practices Act if such
14person, firm, partnership, association, or corporation
15demonstrates that, as part of its routine business practice:
16        (i) it has established and implemented written
17    procedures to comply with this Act and enforces compliance
18    with the procedures;
19        (ii) any failure to comply with this Act is the result
20    of error; and
21        (iii) where an error has caused a failure to comply
22    with this Act, it provides a full refund or credit for all
23    amounts billed to or paid by the consumer from the date of
24    the renewal until the date of the termination of the
25    account, or the date of the subsequent notice of renewal,
26    whichever occurs first.



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1(Source: P.A. 93-950, eff. 1-1-05.)