Section 10. The Automatic Contract Renewal Act is amended
by changing Sections 10, 15, and 20 as follows:
(815 ILCS 601/10) (2006)
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.
(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).
(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.
(Source: P.A. 91-674, eff. 6-1-00.)
(815 ILCS 601/15)
815-601/15- Sec. 15. Violation. A violation of this Act
constitutes an unlawful practice under the Consumer Fraud and Deceptive Business
Practices Act [815
ILCS 505/1 et seq.].
(815 ILCS 601/20)
Sec. 20. Applicability.
(a) This Act does not apply to a contract entered into
before the effective date of this Act.
(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.
(c) This Act does not apply to business-to-business
contracts.
(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.
(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.
(Source: P.A. 91-674, eff. 6-1-00.)
Effective Date: 1/1/2005