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| Public Act 093-0950 |
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AN ACT concerning business transactions.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Consumer Fraud and Deceptive Business | ||||
Practices Act is amended by changing Section 2Z as follows:
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(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
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Sec. 2Z. Violations of other Acts. Any person who knowingly | ||||
violates
the Automotive Repair Act,
the Home Repair and | ||||
Remodeling Act,
the Dance Studio Act,
the Physical Fitness | ||||
Services Act,
the Hearing Instrument Consumer Protection Act,
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the Illinois Union Label Act,
the Job Referral and Job Listing | ||||
Services Consumer Protection Act,
the Travel Promotion | ||||
Consumer Protection Act,
the Credit Services Organizations | ||||
Act,
the Automatic Telephone Dialers Act,
the Pay-Per-Call | ||||
Services Consumer Protection Act,
the Telephone Solicitations | ||||
Act,
the Illinois Funeral or Burial Funds Act,
the Cemetery | ||||
Care Act,
the Safe and Hygienic Bed Act,
the Pre-Need Cemetery | ||||
Sales Act,
the High Risk Home Loan Act, subsection (a) or (b) | ||||
of Section 3-10 of the
Cigarette Tax Act, subsection
(a) or (b) | ||||
of Section 3-10 of the Cigarette Use Tax Act, the Electronic
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Mail Act, or paragraph (6)
of
subsection (k) of Section 6-305 | ||||
of the Illinois Vehicle Code, or the Automatic Contract Renewal | ||||
Act commits an unlawful practice within the meaning of this | ||||
Act.
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(Source: P.A. 92-426, eff. 1-1-02; 93-561, eff. 1-1-04.)
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Section 10. The Automatic Contract Renewal Act is amended | ||||
by changing Sections 10, 15, and 20 as follows:
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(815 ILCS 601/10)
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Sec. 10. Automatic renewal; requirements. | ||||
(a) Any person, firm, partnership, association, or | ||||
corporation that sells or offers to sell any products or | ||
services to a consumer pursuant to a contract, where such | ||
contract automatically renews unless the consumer cancels the | ||
contract, shall disclose the automatic renewal clause clearly | ||
and conspicuously in the contract, including the cancellation | ||
procedure.
If a contract is subject
to automatic renewal, the | ||
clause providing for automatic renewal must
appear in the | ||
contract in a clear and conspicuous manner.
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(b) Any person, firm, partnership, association, or | ||
corporation that sells or offers to sell any products or | ||
services to a consumer pursuant to a contract, where such | ||
contract term is a specified term of 12 months or more, and | ||
where such contract automatically renews for a specified term | ||
of more than one month unless the consumer cancels the | ||
contract, shall notify the consumer in writing of the automatic | ||
renewal. Written notice shall be provided to the consumer no | ||
less than 30 days and no more than 60 days before the | ||
cancellation deadline pursuant to the automatic renewal | ||
clause. Such written notice shall disclose clearly and | ||
conspicuously: | ||
(i) that unless the consumer cancels the contract it | ||
will automatically renew; and | ||
(ii) where the consumer can obtain details of the | ||
automatic renewal provision and cancellation procedure | ||
(for example, by contacting the business at a specified | ||
telephone number or address or by referring to the | ||
contract).
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(c) A person, firm, partnership, association, or | ||
corporation will not be liable for a violation of this Act or | ||
the Consumer Fraud and Deceptive Business Practices Act if such | ||
person, firm, partnership, association, or corporation | ||
demonstrates that, as part of its routine business practice: | ||
(i) it has established and implemented written | ||
procedures to comply with this Act and enforces compliance | ||
with the procedures; | ||
(ii) any failure to comply with this Act is the result | ||
of error; and | ||
(iii) where an error has caused a failure to comply | ||
with this Act, it provides a full refund or credit for all | ||
amounts billed to or paid by the consumer from the date of | ||
the renewal until the date of the termination of the | ||
account, or the date of the subsequent notice of renewal, | ||
whichever occurs first.
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(Source: P.A. 91-674, eff. 6-1-00.)
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(815 ILCS 601/15)
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Sec. 15. Violation. A violation of this Act constitutes an | ||
unlawful practice under the Consumer Fraud and Deceptive | ||
Business Practices Act
If a contract does not comply with this | ||
Act, the
automatic renewal provisions are not enforceable by a | ||
party who prepared the
contract or directed its preparation.
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(Source: P.A. 91-674, eff. 6-1-00.)
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(815 ILCS 601/20)
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Sec. 20. Applicability. | ||
(a) This Act does not apply to a contract
entered into | ||
before the effective date of this Act.
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(b) This amendatory Act of the 93rd General Assembly does | ||
not apply to a contract entered into before the effective date | ||
of this amendatory Act of the 93rd General Assembly.
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(c) This Act does not apply to business-to-business | ||
contracts.
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(d) This Act does not apply to banks, trust companies, | ||
savings and loan associations, savings banks, or credit unions | ||
licensed or organized under the laws of any state or the United | ||
States, or any foreign bank maintaining a branch or agency | ||
licensed or organized under the laws of any state of the United | ||
States, or any subsidiary or affiliate thereof.
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(e) This Act does not apply to a contract that is extended | ||
beyond the original term of the contract as the result of the | ||
consumer's initiation of a change in the original contract | ||
terms.
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(Source: P.A. 91-674, eff. 6-1-00.)
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