SB2822eng 104TH GENERAL ASSEMBLY

SB2822 Engrossed LRB104 16965 SPS 30379 b

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Digital Purchase Transparency Act.

Section 5. Definitions. As used in this Act:

"Blockchain-based asset" means a digital good whose ownership and access are verified through a decentralized ledger technology and that cannot be unilaterally revoked or altered by the seller after the transaction.

"Clear and conspicuous" means in a manner that clearly calls attention to the language. "Clear and conspicuous" includes using larger type than the surrounding text, using contrasting type, font, or color to the surrounding text of the same size, and setting off the surrounding text by using symbols or other marks.

"Digital application or game" means an application or game that a person accesses and manipulates using a specialized electronic gaming device, computer, mobile device, tablet, or other device with a display screen, including any add-ons or additional content for that application or game.

"Digital audio work" means a work that results from the fixation of a series of musical, spoken, or other sounds that are transferred electronically, including prerecorded or live songs, music, oral readings of books or other written materials, speeches, ringtones, and other sound recordings.

"Digital audiovisual work" means a series of related images and accompanying sounds that, when shown in succession, impart an impression of motion, including motion pictures, musicals, videos, news and entertainment programs, and live events.

"Digital book" means a work that is generally recognized, in the ordinary and usual sense, as a book of fiction or nonfiction and that is transferred electronically.

"Digital code" means a code that provides the person who holds the code a right to obtain an additional digital good or a digital audiovisual work, digital audio work, or digital book that may be obtained by any means, including tangible forms and electronic mail, regardless of whether the code is designated as song code, video code, or book code. "Digital code" includes: (i) codes that are used to access or obtain any specified digital goods or any additional digital goods that have been previously purchased; and (ii) promotion cards or codes that are purchased by a retailer or other business entity for use by the retailer's or entity's customers.

"Digital good" includes, whether electronically or digitally delivered or accessed, a digital audiovisual work, digital audio work, digital book, digital code, or digital application or game. "Digital good" does not include a cable television service; satellite relay television service; Internet access service; telecommunications service; or any other distribution of television, video, radio, Internet, or telecommunications service. "Digital good" also does not include any service that is clearly and conspicuously identified at the point of sale as being a monthly subscription service.

Section 10. Required disclosures.

(a) It is unlawful for a seller of a digital good to offer for sale or advertise a digital good to a consumer using the terms "buy" or "purchase" or any other term that a reasonable person would understand to confer an ownership interest in that digital good unless either:

(1) at the time of each transaction, the seller:

(A) provides to the consumer a complete list of restrictions and conditions for the license, including any circumstances under which access may be revoked; and

(B) receives an affirmative acknowledgment from the consumer that the consumer received from the seller:

(i) a license to access the digital good; and

(ii) a notice that the seller may unilaterally revoke access to the digital good if the seller no longer holds the right to the digital good; or

(2) before executing each transaction, the seller provides to the consumer a clear and conspicuous statement that: (i) states in plain language that buying or purchasing a digital good is a license; and (ii) includes a hyperlink, quick response code, URL, or other similar method to access the terms and conditions of the license.

Any affirmative acknowledgment from the consumer or clear and conspicuous statement required under this subsection shall be distinct and separate from any other terms and conditions of the transaction.

(b) This Section does not require a person to download a digital good or prohibit a person from storing a digital good on a server for access through the Internet.

Section 15. Limitations. This Act does not apply to:

(1) a subscription-based service that advertises or offers for sale access to any digital good solely for the duration of the subscription;

(2) a digital good that is advertised or offered to a person without monetary consideration;

(3) a digital good that is advertised or offered to a person and that the seller cannot revoke access to after the transaction, including making the digital good available at the time of purchase for permanent offline download to an external storage source to be used without a connection to the Internet;

(4) a blockchain-based asset, including a non-fungible token, where ownership is decentralized and not subject to unilateral revocation by the seller;

(5) an educational or noncommercial digital good that is provided by a public library, educational institution, or open-source platform; or

(6) content owners or licensors whose digital goods are sold by a third party.

Section 20. Enforcement. A violation of any of the provisions of this Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General by that Act shall be available to the Attorney General for the enforcement of this Act.

Section 90. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2MMMM as follows:

(815 ILCS 505/2MMMM new)

Sec. 2MMMM. Violations of the Digital Purchase Transparency Act. Any person who violates the Digital Purchase Transparency Act commits an unlawful practice within the meaning of this Act.