Full Text of HB5138 101st General Assembly
HB5138 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB5138 Introduced 2/18/2020, by Rep. Mary Edly-Allen SYNOPSIS AS INTRODUCED: |
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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.
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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 Automatic Contract Renewal Act is amended by | 5 | | changing Section 10 as follows:
| 6 | | (815 ILCS 601/10)
| 7 | | Sec. 10. Automatic renewal; requirements. | 8 | | (a) Any person, firm, partnership, association, or | 9 | | corporation that sells or offers to sell any products or | 10 | | services to a consumer pursuant to a contract, where such | 11 | | contract automatically renews unless the consumer cancels the | 12 | | contract, shall disclose the automatic renewal clause clearly | 13 | | and conspicuously in the contract, including the cancellation | 14 | | procedure.
| 15 | | (b) Any person, firm, partnership, association, or | 16 | | corporation that sells or offers to sell any products or | 17 | | services to a consumer pursuant to a contract, where such | 18 | | contract term is a specified term of 6 12 months or more, and | 19 | | where such contract automatically renews for a specified term | 20 | | of more than one month unless the consumer cancels the | 21 | | contract, shall notify the consumer in writing of the automatic | 22 | | renewal. Written notice shall be provided to the consumer no | 23 | | less than 30 days and no more than 60 days before the |
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| 1 | | cancellation deadline pursuant to the automatic renewal | 2 | | clause. Such written notice shall disclose clearly and | 3 | | conspicuously: | 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 | 12 | | corporation will not be liable for a violation of this Act or | 13 | | the Consumer Fraud and Deceptive Business Practices Act if such | 14 | | person, firm, partnership, association, or corporation | 15 | | demonstrates 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.)
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