auto renewal glowiak 012522OAKBROOK TERRACE – To give consumers options in contracts set to automatically renew, State Senator Suzy Glowiak Hilton (D-Western Springs) introduced a measure to require companies to give a clear notification of the agreement’s terms before the consumer accepts.

“Automatic renewal contracts have become increasingly popular in recent years due to streaming services, retail, cell phone companies and more,” said Glowiak Hilton, chair of the Senate Commerce Committee. “To ensure consumers are aware of the automatic renewal commitment, this initiative requires companies to reiterate the contract before consumers accept its terms.”

These consumer protection initiatives make several updates to the state’s Automatic Contract Renewal Act. Current protections are improved by requiring companies to give written notice to consumers before a contract renews and explain what the terms will be, and allowing consumers to end contracts obtained online by visiting the website or by calling.

Businesses who offer a free trial period will also be required to give written notice to the consumer before the promotional period ends.

“Consumers deserve to know what’s in their contracts with large companies through clear communication,” Glowiak Hilton said. “We can offer protection from deceitful business practices by discussing and advancing measures that work to ensure consumers are aware of the contract’s terms and have the opportunity to cancel if they wish.”

Senate Bill 3447 awaits to be assigned to a committee.