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| Public Act 102-0517 | ||||
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AN ACT concerning business.
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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 Automatic Contract Renewal Act is amended | ||||
by changing Section 10 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.
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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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(b-5) A person, firm, partnership, association, or | ||
corporation that makes an automatic renewal offer or | ||
continuous service offer online shall provide a toll-free | ||
telephone number, electronic mail address, a postal address if | ||
the seller directly bills the consumer, or another | ||
cost-effective, timely, and easy-to-use mechanism for | ||
cancellation that shall be described in the notice required in | ||
subsection (b). A consumer who accepts an automatic renewal or | ||
continuous service offer online must be allowed to terminate | ||
the automatic renewal or continuous service exclusively | ||
online, which may include a termination email formatted and | ||
provided by the business that a consumer can send to the | ||
business without additional information. | ||
(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. 93-950, eff. 1-1-05.)
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