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Full Text of SB3380
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SB3380 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3380
Introduced 2/4/2026, by Sen. Laura Ellman
SYNOPSIS AS INTRODUCED:
815 ILCS 601/5
815 ILCS 601/10
Amends the Automatic Contract Renewal Act. Provides that 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, shall provide the consumer with the
option to cancel the contract, at any time, using a simple cancellation
mechanism in the same medium that the consumer used to consent to the
contract. Provides that an entity shall provide a clear and conspicuous
notice, in a manner that may be retained by the consumer, of any material
change to the terms of a contract containing an automatic renewal offer at
least 3 days prior to the change to the terms. Sets forth additional
requirements concerning the cancellation of automatic renewal offers and
continuous service offers entered into online, including requiring an
entity to provide a one-step online cancellation link. Makes other
changes.
LRB104 19662 SPS 33111 b
A BILL FOR
SB3380
LRB104 19662 SPS 33111 b
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
5
by changing Sections 5 and 10 as follows:
6
(815 ILCS 601/5)
7
Sec. 5.
Definitions.
In this Act:
8
"Automatic renewal offer terms" means the following clear
9
and conspicuous disclosures:
10
(1) that the paid subscription or purchasing agreement
11
will continue until the consumer cancels;
12
(2) the timeframe in which the consumer must cancel in
13
order to avoid being charged for a subsequent term;
14
(3) the recurring charges that will be charged to the
15
consumer's credit or debit card or payment account with a
16
third party as part of the automatic renewal contract, and
17
that the amount of the charge may change, if that is the
18
case, and the amount to which the charge will change, if
19
known;
20
(4) the length of the automatic renewal term or that
21
the service is continuous, unless the length of the term
22
is chosen by the consumer; and
23
(5) the minimum purchase obligation, if any.
SB3380
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LRB104 19662 SPS 33111 b
1
"Clear and conspicuous" means in larger type than the
2
surrounding text, or in contrasting type, font, or color to
3
the surrounding text of the same size, or set off from the
4
surrounding text of the same size by symbols or other marks, in
5
a manner that clearly calls attention to the language. In the
6
case of an audio disclosure, "clear and conspicuous" means in
7
a volume and cadence sufficient to be readily audible and
8
understandable.
9
"Contract" means a written agreement between 2 or more
10
parties.
11
"One-step online cancellation" means an online method of
12
cancellation that does not require the consumer to take
13
additional actions that obstruct or delay the consumer's
14
ability to immediately terminate an automatic renewal contract
15
or continuous service offer.
16
"Parties" includes individuals and other legal entities,
17
but does not include the federal government, this State or
18
another state, or a unit of local government.
19
(Source: P.A. 102-558, eff. 8-20-21; 103-70, eff. 1-1-24
.)
20
(815 ILCS 601/10)
21
Sec. 10.
Automatic renewal; requirements.
22
(a) Any person, firm, partnership, association, or
23
corporation that sells or offers to sell any products or
24
services to a consumer pursuant to a contract, where such
25
contract automatically renews unless the consumer cancels the
SB3380
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LRB104 19662 SPS 33111 b
1
contract, shall:
2
(i) disclose the automatic renewal offer terms clearly
3
and conspicuously in the contract before the subscription
4
or purchasing agreement is fulfilled and in visual
5
proximity, or in the case of an offer conveyed by voice, in
6
temporal proximity, to the request for consent to the
7
offer;
8
(ii) not charge the consumer's credit or debit card or
9
other payment mechanism for an automatic renewal service
10
without first obtaining the consumer's consent to the
11
contract containing the automatic renewal offer terms;
12
(iii) provide an acknowledgment that includes the
13
automatic renewal offer terms, cancellation policy, and
14
information regarding how to cancel, which may be
15
accomplished by linking to a resource that provides
16
instructions that account for different platforms and
17
services, in a manner that is capable of being retained by
18
the consumer;
and
19
(iv) if the offer includes a free gift or trial,
20
disclose how to cancel the contract, which may be
21
accomplished by linking to a resource that provides
22
instructions that account for different platforms and
23
services, and allow the consumer to cancel before the
24
consumer pays for the good or services
; and
.
25
(v) provide the consumer with the option to cancel the
26
contract, at any time, using a simple cancellation
SB3380
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LRB104 19662 SPS 33111 b
1
mechanism in the same medium that the consumer used to
2
consent to the contract containing the automatic renewal
3
offer terms.
4
An entity subject to this subsection shall provide a clear
5
and conspicuous notice, in a manner that may be retained by the
6
consumer, of any material change to the terms of the contract,
7
including any price increase, at least 3 days prior to the
8
change to the terms. The notice shall contain information
9
concerning how to cancel the contract. If the notice is sent
10
electronically, the notice shall include either a hyperlink
11
that directs the consumer to a webpage containing the
12
cancellation process or another reasonably accessible
13
electronic method that directs the consumer to the
14
cancellation process if no webpage exists.
15
(a-5) 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 that includes a
18
free trial or a promotional period of the product or service
19
that lasts 15 days or longer, where such contract
20
automatically renews unless the consumer cancels the contract,
21
shall notify the consumer during the free trial or the
22
promotional period no less than 3 days before the cancellation
23
deadline as described by the automatic renewal offer terms.
24
The person, firm, partnership, association, or corporation
25
shall send the notice in a method in which the consumer is
26
accustomed to interacting with the person, firm, partnership,
SB3380
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LRB104 19662 SPS 33111 b
1
association, or corporation.
2
(b) Any person, firm, partnership, association, or
3
corporation that sells or offers to sell any products or
4
services to a consumer pursuant to a contract, where such
5
contract term is a specified term of 12 months or more, and
6
where such contract automatically renews for a specified term
7
of more than one month unless the consumer cancels the
8
contract, shall notify the consumer in writing of the
9
automatic renewal. Written notice shall be provided to the
10
consumer no less than 30 days and no more than 60 days before
11
the cancellation deadline pursuant to the automatic renewal
12
offer terms. Such written notice shall disclose clearly and
13
conspicuously, in a retainable form:
14
(i) that unless the consumer cancels the contract it
15
will automatically renew;
16
(ii) a mechanism for cancelling the contract, which
17
shall be offered in a manner in which the consumer
18
commonly interacts with the business; and
19
(iii) the deadline by which the consumer must cancel
20
in order to avoid being charged for a subsequent term.
21
(b-5)
Any
A
person, firm, partnership, association, or
22
corporation that
sells or offers to sell any products or
23
services to a consumer pursuant to a contract, where such
24
contract automatically renews unless the consumer cancels the
25
contract, shall provide the consumer with the ability to
26
cancel or terminate the contract, at any time, using a simple,
SB3380
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LRB104 19662 SPS 33111 b
1
easy-to-use cancellation mechanism through all mediums by
2
which the seller allows a consumer to consent or agree to the
3
contract
makes an automatic renewal offer or continuous
4
service offer online shall provide a toll-free telephone
5
number, electronic mail address, a postal address if the
6
seller directly bills the consumer, or another cost-effective,
7
timely, and easy-to-use mechanism for cancellation that shall
8
be described in the notice required in subsection (b)
. A
9
consumer who accepts an automatic renewal or continuous
10
service offer online must be allowed to terminate the
11
automatic renewal or continuous service exclusively online
,
12
which may include a termination email formatted and provided
13
by the business that a consumer can send to the business
14
without additional information, or a link to a website or
15
other online service consumers can use to cancel
.
16
(b-15) An entity subject to the provisions of subsection
17
(b-5) or (b-10) shall be deemed in compliance if the entity
18
provides:
19
(1) a hyperlink to a one-step online cancellation
20
process through a website or other online medium, or
21
through an electronic communication, and the hyperlink is:
22
(A) located on the entity's website, in an
23
electronic device or service provided to the consumer,
24
or in an electronic communication to the consumer; and
25
(B) available to the consumer immediately after
26
the consumer completes a reasonable authentication
SB3380
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LRB104 19662 SPS 33111 b
1
protocol used solely to confirm that the consumer is
2
authorized to make changes to the account; or
3
(2) one of the following means if the consumer
4
consented to the automatic renewal contract offer through
5
means other than through an online medium:
6
(A) an in-person mechanism for cancelling the
7
contract that is at a physical location where the
8
consumer regularly uses any goods or services that are
9
subject to the automatic renewal contract; or
10
(B) a toll-free telephone number.
11
If the entity provides a toll-free telephone number for
12
cancelling the contract, the entity shall answer calls
13
promptly during normal business hours and not obstruct or
14
delay the consumer's ability to cancel. If a consumer leaves a
15
voicemail with the entity requesting cancellation, the entity
16
shall, within one business day, either process the requested
17
cancellation or call the consumer back regarding the
18
cancellation request.
19
(b-20) Notwithstanding the requirements set forth in
20
subsection (b-15), if a consumer requests to cancel the
21
contract, an entity may provide a discount offer, retention
22
benefit, or other consumer benefit or inform the consumer of
23
the effect of the cancellation, provided that the consumer
24
remains able to terminate the automatic renewal contract.
25
If a consumer requests to cancel online, the entity may
26
display a discounted offer, retention benefit, other consumer
SB3380
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LRB104 19662 SPS 33111 b
1
benefit, or information regarding the effects of cancellation,
2
provided that the entity simultaneously continuously displays
3
a prominently located direct link or button entitled "click to
4
cancel", or words to that effect, with the presentation of the
5
discounted offer, retention benefit, other consumer benefit,
6
or information. If the consumer uses this direct link or
7
button to cancel, the entity shall promptly process the
8
cancellation and shall not otherwise obstruct or delay the
9
consumer's ability to proceed with the cancellation.
10
If a consumer requests to cancel by telephone, the entity
11
may present the consumer with a discounted offer, retention
12
benefit, other consumer benefit, or information regarding the
13
effect of cancellation, provided that the entity first informs
14
the consumer that they may complete the cancellation process
15
at any time by stating that they want to "cancel", or words to
16
that effect. If the consumer states the consumer's intention
17
to "cancel", or words to that effect, the entity shall
18
promptly process the cancellation and shall not otherwise
19
obstruct or delay the consumer's ability to cancel.
20
An entity may require a consumer to enter account
21
information or digitally authenticate the consumer's identity
22
before terminating the contract online if the consumer has an
23
account with the entity. A consumer who is unwilling or unable
24
to enter account information or digitally authenticate the
25
consumer's identity before termination of the contract online
26
shall not be prevented from terminating the contract offline
SB3380
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LRB104 19662 SPS 33111 b
1
using another method.
2
(b-20) It is a violation of this Act for any person, firm,
3
partnership, association, or corporation that sells or offers
4
to sell any products or services to a consumer pursuant to a
5
contract, where such contract automatically renews unless the
6
consumer terminates the contract, to charge the consumer or
7
the consumer's account following an increase in price, or a
8
price higher than what was disclosed in the contract's
9
automatic renewal offer terms, without either:
10
(1) obtaining the consumer's consent to the increased
11
price before the increase in price occurs; or
12
(2) allowing the consumer to cancel the contract
13
anytime within at least 7 days after the charge is
14
assessed to the consumer or the consumer's account and
15
refunding the consumer in the amount equivalent to the
16
price of the remaining term of the service, at the time of
17
the cancellation, on a pro rata basis.
18
(b-25) It is a violation of this Act for any person, firm,
19
partnership, association, or corporation that sells or offers
20
to sell any products or services to a consumer pursuant to a
21
contract, where such contract automatically renews, to impose
22
unreasonable or unlawful conditions upon consumer's ability to
23
cancel or refuse to acknowledge, obstruct or unreasonably
24
delay cancellation requested or attempts to request
25
cancellation by a consumer. For the purposes of this
26
subsection, "unreasonable or unlawful conditions" include, but
SB3380
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LRB104 19662 SPS 33111 b
1
are not limited to, hanging up on consumers who call to cancel,
2
providing false information about how to cancel,
3
misrepresenting the consequences or costs of cancellation, or
4
misrepresenting the reasons for delays in processing
5
cancellation requests.
6
(c) A person, firm, partnership, association, or
7
corporation will not be liable for a violation of this Act or
8
the Consumer Fraud and Deceptive Business Practices Act if
9
such person, firm, partnership, association, or corporation
10
demonstrates that, as part of its routine business practice:
11
(i) it has established and implemented written
12
procedures to comply with this Act and enforces compliance
13
with the procedures;
14
(ii) any failure to comply with this Act is the result
15
of error; and
16
(iii) where an error has caused a failure to comply
17
with this Act, it provides a full refund or credit for all
18
amounts billed to or paid by the consumer from the date of
19
the renewal until the date of the termination of the
20
account, or the date of the subsequent notice of renewal,
21
whichever occurs first.
22
(Source: P.A. 102-517, eff. 1-1-22; 103-70, eff. 1-1-24;
23
103-919, eff. 1-1-25
.)
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