Illinois Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   Illinois calls the governing law the Automatic Contract Renewal Act, codified at 815 ILCS 601, and your cancellation letter is the written record that you ended a contract it covers. Section 10(a) reaches any person, firm, partnership, association or corporation selling products or services to a consumer under a contract that automatically renews unless the consumer cancels. Section 5 defines a contract as a written agreement between 2 or more parties.

2. 2

   Section 20 sets the Act's boundaries. It does not apply to business-to-business contracts; to banks, trust companies, savings and loan associations, savings banks or credit unions and their subsidiaries or affiliates; to a provider subject to Article XXII of the Public Utilities Act; to a party regulated by the Director of the Department of Insurance; or to a contract extended past its original term because the consumer initiated a change in its terms.

3. 3

   If you accepted online, subsection (b-5) says you must be allowed to terminate exclusively online. The business may meet this with a termination email it formats and provides, which you can send without additional information, or with a link to a website or other online service consumers can use to cancel. The same subsection requires an online seller to offer a toll-free telephone number, an email address, a postal address if it bills directly, or another cost-effective, timely and easy-to-use mechanism.

4. 4

   Long contracts carry a written renewal notice. For a specified term of 12 months or more that renews for a specified term of more than one month, subsection (b) requires written notice no less than 30 and no more than 60 days before the cancellation deadline. It must disclose, clearly and conspicuously and in a retainable form, that the contract will renew unless cancelled, a cancellation mechanism offered in a manner in which you commonly interact with the business, and the cancel-by deadline.

5. 5

   Trials and promotional prices have their own clock. Under subsection (a-5), added by Public Act 103-0919 effective January 1, 2025, a contract with a free trial or promotional period lasting 15 days or longer requires notice during that period no less than 3 days before the cancellation deadline, sent in a method in which you are accustomed to interacting with the seller. Subsection (a)(iv) separately requires the seller to disclose how to cancel a free gift or trial offer.

6. 6

   The sign-up rules matter to the letter too. Subsection (a) bars charging your card or other payment mechanism without first obtaining your consent to the contract containing the automatic renewal offer terms, and requires an acknowledgment, capable of being retained, that includes those terms, the cancellation policy and how to cancel. Section 5 lists the offer terms, including the recurring charges and any minimum purchase obligation.

7. 7

   Section 15 makes any violation of the Act an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Section 10a of that Act lets a person who suffers actual damage bring an action, and the court in its discretion may award actual economic damages or other relief. Subsection 10(c) of the renewal Act gives the seller a defense where a failure was an error under written compliance procedures and it routinely provides a full refund or credit.

Illinois Requirements for Automatic Renewal Cancellation Letter

• The Contract, Its Term and Whether It Is Business-to-Business

  Identify the written contract, its specified term and how it renews. Section 10(a) covers products or services sold to a consumer under a contract that automatically renews unless cancelled, and Section 20(c) excludes business-to-business contracts, so state that you contracted as a consumer.

• Confirmation the Seller Is Not Excluded by Section 20

  Check Section 20 before citing the Act: banks, trust companies, savings and loan associations, savings banks, credit unions and their affiliates; providers subject to Article XXII of the Public Utilities Act; parties regulated by the Director of the Department of Insurance; and contracts extended because you initiated a change in the original terms are outside it.

• How You Accepted the Offer, and the Online Termination Route

  If you accepted online, subsection 10(b-5) says you must be allowed to terminate exclusively online, which may include a termination email the business formats and provides or a link to a website or other online service. Record how and when you accepted and the exact online route and date you terminated.

• The Cancellation Contact the Seller Listed

  Subsection (b-5) requires an online seller to provide a toll-free telephone number, an email address, a postal address if it bills directly, or another cost-effective, timely and easy-to-use mechanism, described in the subsection (b) notice. Address the letter to that contact if one was given and note it if none was.

• Whether the Subsection (b) Written Notice Was Owed and Received

  For a specified term of 12 months or more renewing for more than one month, subsection (b) requires written notice no less than 30 and no more than 60 days before the cancellation deadline, in a retainable form, disclosing the renewal, a mechanism offered in a manner in which you commonly interact with the business, and the deadline. Record what arrived and when.

• Trial or Promotional Period Dates and the Subsection (a-5) Notice

  Where a free trial or promotional period lasted 15 days or longer, subsection (a-5) requires notice during it no less than 3 days before the cancellation deadline, sent in a method in which you are accustomed to interacting with the seller. Give the start and end dates and what you received.

• Each Disputed Charge and Whether You Consented First

  Subsection (a)(ii) says a seller shall not charge your card or other payment mechanism for an automatic renewal service without first obtaining your consent to the contract containing the automatic renewal offer terms. List each charge by date and amount and say whether you gave that consent.

• The Consumer Fraud Act Reference, Stated Without Predicting an Outcome

  Section 15 makes a violation an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act, whose Section 10a lets a person who suffers actual damage sue; the court may award actual economic damages or other relief in its discretion. Subsection 10(c) gives the seller an error defense. Cite it factually. Attorney review is available as an option before relying on it.