Bill
SB 3562
The bill tightens auto-renewals by requiring clear disclosures, easy online cancellation, timely notices of term changes, and protections against unwanted charges.
Title: AUTO CONTRACT-SIMPLE CANCEL
Jurisdiction: Illinois
Introduced: February 5, 2026
Sponsor: Sen. Michael E. Hastings
Co-sponsors: multiple senators (see below)
Session/Status: As introduced; listed actions through April 17, 2026 (Rule 2-10 deadline process; amendments filed and referred; committee activity noted)
Subject: Amendments to the Automatic Contract Renewal Act
Overall purpose
- Strengthen protections for consumers with contracts that automatically renew by ensuring easier cancellation and clearer renewal terms. The bill imposes explicit requirements on disclosures, consent, cancellation mechanisms, and notice around automatic renewals, continuous service offers, and free trial/promotional periods.
Key provisions and changes (highlights)
1) Definitions and clarity (Section 5)
- Redefines terms to improve consumer understanding, including:
- Automatic renewal offer terms: required disclosures include (a) that the paid agreement continues until cancellation, (b) cancellation deadline to avoid the next charge, (c) details of recurring charges and potential changes, (d) length of renewal term or that service is continuous, (e) any minimum purchase obligation.
- Clear and conspicuous: defined with visual and audible standards (larger type, contrasting color, or audible in audio disclosures).
- One-step online cancellation: online method that does not require additional steps to terminate.
- Other terms of general applicability (parties, contract, etc.).
2) Automatic renewal requirements (Section 10)
- Before consent is obtained:
- Automatic renewal offer terms must be disclosed clearly and conspicuously in the contract, in close visual or temporal proximity to consent.
- Providers may not charge payment methods without first obtaining consumer consent to the contract containing renewal terms.
- Acknowledgment: providers must give an acknowledgment that includes renewal terms, cancellation policy, and how to cancel (retained by the consumer). May link to a resource with cancellation instructions across platforms.
- If the offer includes a free gift or trial, disclosure on how to cancel, with cancellation instructions accessible via linked resources; consumer must be allowed to cancel before payment for goods/services.
- The consumer must have an option to cancel at any time using a simple cancellation mechanism in the same medium used to consent (or other accessible method).
- Material changes to terms:
- Providers must give a clear, conspicuous notice of any material change to terms (including price increases) at least 3 days before the change takes effect, with information on how to cancel. Electronically sent notices must include a cancellation path (hyperlink to cancellation or accessible method).
3) Free trial or promotional periods (a-5)
- For offers with a 15-day (or longer) free trial/promo that auto-renew, providers must notify the consumer no less than 3 days before the cancellation deadline and in a method consistent with consumer interaction.
4) Longer-term contract renewals and notices (b)
- For contracts with 12-month terms that auto-renew for longer terms unless canceled, providers must:
- Notify consumers 30 to 60 days before the cancellation deadline.
- Include clear, conspicuous disclosures that renewal will occur, cancellation mechanisms, and the cancellation deadline.
- Provide a retainable notice.
5) Online cancellation requirements (b-5, b-10, b-15)
- Online cancellation: consumers must be able to cancel or terminate online at any time using a simple, easy-to-use cancellation mechanism.
- The cancellation mechanism must be available:
- In the same medium used to consent (activation of renewal), or
- In the consumer’s usual interaction medium (in-person, toll-free number, email, postal address, etc.), with a described cancellation process.
- A one-step online cancellation link can satisfy these requirements.
- If a consumer consented by non-online means, alternative cancellation options (physical location or toll-free number) must be offered.
- Consumers may receive retention offers or other information if canceling, but must retain ability to terminate.
6) Online termination specifics (b-20)
- If a consumer accepts an online renewal offer, they must be allowed to terminate exclusively online, without steps that obstruct termination (e.g., a simple termination email or a direct cancellation link).
7) Price increases and refunds (b-20)
- If prices increase beyond what was disclosed, the provider must either obtain consent for the higher price before charging or allow cancellation within at least 7 days after the charge with a prorated refund for the remaining term.
Liability and compliance (c)
- Entities can defend against violations by showing:
- Written procedures to comply and enforcement of those procedures,
- Violations caused by error,
- Full refunds/credits for billed amounts from renewal date to termination or subsequent renewal notice date.
Targeted entities
- Any person, firm, partnership, association, or corporation that sells or offers products or services to a consumer under a contract with automatic renewal.
Notable procedural/timeline details
- Notable deadlines include:
- Notice of material changes: at least 3 days prior to changes.
- 30 to 60 days advance notice for 12-month-plus renewals (b section).
- The bill defines specific formats for notices and acknowledges retention requirements.
- Introduced in February 2026, with several co-sponsors and multiple amendments and committee actions recorded through April 2026.
Implications and potential impact
- Consumers: Easier and faster cancellation; clearer renewal terms; more predictable charges; better protection against unwanted auto-renewals.
- Businesses: Tighter compliance burden, more explicit disclosures, need for streamlined online cancellation processes, and careful management of price increases and renewal notices.
- Overall: A shift toward enhanced transparency and consumer-friendly cancellation practices for auto-renewing contracts.
Key dates to watch
- If enacted, the bill would take effect according to the general effective-date provisions in Illinois law (not specified in the text provided). Monitor for amendments, floor votes, and potential gubernatorial action.
Sponsors
- Primary sponsor: Sen. Michael E. Hastings
- Co-sponsors include: Suzy Glowiak Hilton, Doris Turner, Mike Halpin, Mattie Hunter, Graciela Guzmán, Christopher Belt, Meg Loughran Cappel, Adriane Johnson, Rachel Ventura, Cristina Castro, and others.
Compiled from official sources — confirm details with the bill’s official record.
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