95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2909


 
Introduced 2/15/2008, by Sen. Michael Noland
 
SYNOPSIS AS INTRODUCED:
 		













New Act









    Creates the Consumer Contract Plain Language Act.  Requires that consumer
contracts involving $100,000 or less meet certain criteria to be clear and
readable.  Authorizes the Attorney General to bring an action to restrain the
use of a consumer contract that violates the Act.
















LRB095 20049 WGH 46499 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB2909

LRB095 20049 WGH 46499 b






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    AN ACT concerning consumer contracts. 

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


 
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    Section 1. Short title.   This Act may be cited as the 
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Consumer Contract
Plain Language Act.


 
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    Section 5. Definitions.   As used in this Act, unless the 
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context clearly
requires otherwise:


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    "Consumer" means an individual who, primarily for 
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personal, family, or
household purposes, either: (i) gives or 
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promises to give money or other
consideration
in exchange for 
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an interest in services or real or personal property, including

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money, or (ii) leases residential premises for a term not 
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exceeding 3 years.


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    "Consumer contract" means a written contract with a 
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consumer in which the
price, excluding interest or finance 
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charges, is $100,000 or less.



 
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    Section 10. Plain language required.   Except as provided in 
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Section 15,
every consumer contract made after the effective 
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date of this Act shall meet
all of the following criteria:


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        (1) The contract shall adequately inform the consumer 
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    of the rights and
duties fixed by the contract.


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        (2) The contract shall be sufficiently clear and 
 


 






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    readable for the ordinary
reader, using, so far as is 
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    practical, words with common, everyday meanings.


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        (3) The contract shall be appropriately divided into 
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    sections and
paragraphs, and the sections shall contain 
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    captions.


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        (4) The contract shall be printed in 10-point or larger 
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    type, with at
least one point of leading between lines, and 
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    in ink that contrasts
sufficiently with the paper.



 
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    Section 15. Exceptions.   This Act does not prohibit the use 
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of the following
in consumer contracts:


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        (1) Words or phrases, or forms of agreement, required 
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    by State or federal
law or by rule or regulation of a State 
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    or federal governmental
instrumentality.


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        (2) Technical terms used to describe a service or 
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    property that is the
subject of the contract if (i) those 
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    terms are customarily used by consumers
in connection with 
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    the service or property or (ii) there is no sufficiently

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    clear and readable substitute for those terms.



 
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    Section 20. Violation.


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    (a) A violation of Section 10 does not render a consumer 
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contract void or
voidable, nor does it constitute a defense to 
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an action or proceeding for
breach of the contract or to 
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enforce the contract.


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    (b) If the Attorney General has reason to believe that a 
 


 






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business entity is
using or has used a consumer contract that 
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violates Section 10 and determines
that an action under this 
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subsection would be in the public interest, the
Attorney 
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General may bring an action, in the name of the People of the 
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State of
Illinois, against that business entity to restrain the 
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use of that consumer
contract.