Bill
SB 3228
Illinois bill strengthens auto-renew protections by requiring easy one-step online cancellation, clear renewal terms, and timely notices for term changes and price increases.
SB 3228 (104th General Assembly) - Auto Contract Simple Cancel
Jurisdiction: Illinois
Introduced: February 2, 2026
Sponsor: Senator Doris Turner (co-sponsor)
Purpose
- This bill amends the Automatic Contract Renewal Act to strengthen protections for consumers with contracts that automatically renew. It requires easier cancellation options, clearer renewal disclosures, and timely notice of material changes to terms, including price changes. It also tightens online cancellation requirements and establishes remedies for price increases within automatic renewal terms.
Key Provisions and Changes (substantive)
1) Right to Cancel with Simple Online Cancellation (Section 10 and definitions)
- Any entity selling products or services under an automatically renewing contract must
- provide a clear, conspicuous option to cancel at any time using a simple cancellation mechanism in the same medium used to obtain consent.
- ensure the cancellation mechanism is easy to access and use.
2) Clear and Conspicuous Renewal Terms (Definitions)
- The bill defines “Automatic renewal offer terms” to include:
- the fact that the subscription continues until canceled
- the cancel-by deadline to avoid the next charge
- recurring charges, potential changes to amount, and the amount of the charge if known
- length of the renewal term or continuity of service
- any minimum purchase obligation
- “Clear and conspicuous” disclosures must be prominently displayed (larger/contrasting type, or audio disclosures in a clearly audible manner).
- “One-step online cancellation” is defined as a cancellation method not requiring extra steps.
3) Notice Requirements for Changes to Terms (Section 10(a))
- If there is a material change to terms (including price increases) in a contract with an automatic renewal, the entity must notify the consumer at least 3 days before the change.
- The notice must be retainable by the consumer and include information on how to cancel. Electronic notices must include a direct cancellation link or another accessible method.
4) Additional Online and Free Trial/Promotional Period Rules (Section 10(a) and a-5)
- For free trials or promotions lasting 15 days or longer, providers must notify the consumer no less than 3 days before the cancellation deadline, using a method the consumer typically engages with.
- Online offers must provide a cancellation mechanism that can be completed online (one-step cancellation) and be available via a hyperlink or other direct online method after authentication, or alternative offline options (in-person at a location or toll-free number) if online is not used to consent.
5) Written Notice for Longer-Term Auto Renewals (Section 10(b))
- For contracts with a specified 12-month or longer term that renews for more than one month, providers must send a written notice 30 to 60 days before the cancellation deadline, disclosing:
- renewal is automatic
- cancellation mechanism and deadline to avoid charges
6) Online and Offline Cancellation Flexibility (Section 10(b-5), (b-10), and b-15)
- Online cancellation must be available via a one-step process (hyperlink or equivalent) or, if consent was given offline, through in-person or toll-free options.
- Consumers may be offered a retention incentive or other information, but must still be able to terminate.
- If a consumer authenticates an online cancellation, providers may require account verification but must allow offline termination if desired.
7) Price Increases and Remedies (Section 10(b-20))
- Providers may not charge an increased price without:
- obtaining prior consumer consent, or
- allowing cancellation within at least 7 days after the charge and offering a pro rata refund of the remaining term.
8) Compliance Safe Harbor (Section 10(c))
- A company can defend against violations by showing it has written procedures to comply, that noncompliance was the result of an error, and provides full refunds/credits for billed amounts from renewal to cancellation or the next renewal notice, as applicable.
Who Is Affected
- Businesses selling products or services under automatic-renewal or continuous service contracts in Illinois.
- Consumers entering into such contracts, including those who engage online or via promotional/free-trial offers.
Timeline and Process
- If enacted, the bill would apply to contracts with automatic renewal terms and would require ongoing compliance with cancellation mechanisms, notices, and disclosures as described.
- Specific effective dates are not provided in the introduced text; references indicate alignment with existing Automatic Contract Renewal Act provisions (with updates effective upon enactment).
Overall Impact
- Strengthens consumer ability to cancel auto-renewing contracts quickly and easily.
- Improves transparency around renewal terms, price changes, and cancellation procedures.
- Expands online cancellation options and preserves offline avenues for cancellation.
- Introduces stricter notice requirements for term changes and price increases, with remedies for noncompliance.
Compiled from official sources — confirm details with the bill’s official record.
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