SPRINGFIELD – Illinois residents will now be given clear notice on contracts that automatically renew, thanks to a law sponsored by State Senator Suzy Glowiak Hilton.

“Automatic renewal contracts can be confusing, and businesses take advantage of this all the time,” said Glowiak Hilton (D-Western Springs “This new law will ensure residents give clear consent when entering into a contract so they are not charged for services they do not need or want.”

Glowiak Hilton’s measure requires clear and conspicuous disclosure of a contract’s automatic renewal terms, including that the contract will continue until the consumer cancels, the deadline to cancel before being charged for the renewal, the amount of recurring charges, and the length of the renewal terms. For contracts lasting twelve months or more and that automatically renew for more than one month, customers must receive notice at least 30 days before the renewal.

“This law will prevent businesses from robbing residents,” said Glowiak Hilton. “No business in Illinois should be allowed to manipulate someone by not providing the right information about what they are selling to them.”

Senate Bill 328 was signed into law Friday and goes into effect on Jan. 1, 2024.