SB2764*LRB10336659SPS73105a* EnrolledRep. LRB103 36659 SPS 66768 b AN ACT concerning business.

BeMary itGill enactedFiled: by the People of the State of Illinois, represented in the General Assembly:

Section5/7/2024 5.10300SB2764ham002 LRB103 36659 SPS 73105 a AMENDMENT TO SENATE BILL 2764 AMENDMENT NO.

The______. Automatic Contract Renewal Act is amended by changing Section 10 as follows:

(815Amend ILCSSenate 601/10)Bill Sec.2764 on page 1, line 5, by replacing "Section 10" with "Sections 10 and 20";

10.and on page 4, immediately below line 23, by inserting the following:

Automatic"(815 renewal;ILCS 601/20) Sec.

requirements.20.

(a)Applicability. 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:

(i)(a) discloseThis theAct automaticdoes renewalnot offerapply termsto clearlya andcontract conspicuouslyentered ininto the contract before the subscriptioneffective ordate purchasing agreement is fulfilled and in visual proximity, or in the case of anthis offerAct. conveyed by voice, in temporal proximity, to the request for consent to the offer;

(ii)(b) notThis chargeamendatory theAct consumer'sof creditthe or93rd debitGeneral cardAssembly ordoes othernot paymentapply mechanismto fora ancontract automaticentered renewalinto servicebefore without first obtaining the consumer'seffective consentdate toof thethis contractamendatory containingAct of the automatic93rd renewalGeneral offerAssembly. terms;

(iii)(c) provideThis anAct acknowledgmentdoes thatnot includesapply the SB2764 Enrolled - 2 - LRB103 36659 SPS 66768 b automatic renewal offer terms, cancellation policy, and information regarding how to cancel,business-to-business whichcontracts. may be accomplished by linking to a resource that provides instructions that account for different platforms and services, in a manner that is capable of being retained by the consumer;

and(d) (iv)This ifAct thedoes offernot includesapply to banks, trust companies, 10300SB2764ham002 -2- LRB103 36659 SPS 73105 a freesavings giftand loan associations, savings banks, or trial,credit discloseunions howlicensed toor cancelorganized under the contract,laws whichof mayany bestate accomplishedor bythe linkingUnited toStates, aor resourceany thatforeign providesbank instructionsmaintaining thata accountbranch foror differentagency platformslicensed andor services,organized andunder allow the consumerlaws toof cancelany beforestate of the consumerUnited paysStates, foror theany goodsubsidiary or services.affiliate thereof.

(a-5)(e) AnyThis person,Act firm,does partnership,not association,apply or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract that includesis aextended freebeyond trialthe ororiginal aterm promotional period of the product or service that lasts 15 days or longer, where such contract automaticallyas renews unless the consumerresult cancelsof the contract,consumer's shallinitiation notifyof thea consumerchange duringin the freeoriginal trialcontract or the promotional period no less than 3 days before the cancellation deadline as described by the automatic renewal offer terms.

The(f) person,This firm,Act partnership,does association,not orapply corporationto shalla sendcontract for the noticesale inof any product or service by a methodprovider, inor whichan affiliate of the consumerprovider, that is accustomedsubject to interactingArticle withXXII of the person,Public firm,Utilities partnership,Act. association, or corporation.

(b)(g) AnyThis person,Act firm,does partnership,not association,apply or SB2764 Enrolled - 3 - LRB103 36659 SPS 66768 b corporation that sells or offers to sell any products or services to a consumerparty, pursuant to a contract, where such contract term is a specified term of 12 months or more,an andaffiliate where such contract automatically renews for a specified term of more than one month unless the consumerparty, cancelsregulated theby contract, shall notify the consumerDirector in writing of the automaticDepartment renewal.of Insurance.

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 offer terms.

Such written notice shall disclose clearly and conspicuously, in a retainable form:

(i) that unless the consumer cancels the contract it will automatically renew;

(ii) a mechanism for cancelling the contract, which shall be offered in a manner in which the consumer commonly interacts with the business;

and (iii) the deadline by which the consumer must cancel in order to avoid being charged for a subsequent term.

(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 SB2764 Enrolled - 4 - LRB103 36659 SPS 66768 b 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, or a link to a website or other online service consumers can use to cancel.

(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.

102-517, eff.

1-1-22;

1-1-24.)1-1-24.)".