Plain-English guide to the Illinois auto-renewal law for subscription and membership sellers, with slides, who is covered, notice timing and penalties.
Last reviewed October 29, 2026 · General information, not legal advice
General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.
The Illinois Automatic Contract Renewal Act, at 815 ILCS 601, sets rules for businesses that sell products or services under a contract that renews on its own unless the customer cancels. It is the Illinois auto-renewal law for subscriptions, memberships and service plans. The Act has no fine schedule of its own. A violation is treated as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. This page is for owners who sell recurring plans to individuals.
Slide show: The Automatic Contract Renewal Act in seven slides
What it does
Illinois sets rules for contracts that renew automatically unless the customer cancels.
Who it covers
Sellers to consumers. Business-to-business contracts, banks and credit unions, insurance-regulated sellers and certain utility providers are excluded.
The rule
Show the renewal terms clearly next to the request for consent, and get consent before charging.
The number
On a contract term of 12 months or more that renews for over a month, send a written reminder 30 to 60 days before the cancel-by date.
The trial deadline
If a free trial or promotion lasts 15 days or longer, remind the customer at least 3 days before the cancellation deadline.
The penalty
A violation is a Consumer Fraud Act violation: a court can impose a civil penalty of up to $50,000 in a government action, and private suits can be filed within 3 years.
The tip
Sign up online, cancel online. Written compliance procedures and full refunds or credits for errors can protect a seller.
Who is covered
Question
Answer
Business size
The text has no employee, revenue or industry-size test.
Who must comply
Any person, firm, partnership, association or corporation selling to a consumer under a contract that renews unless canceled.
The word "consumer"
This Act does not define it.
Excluded: business customers
Business-to-business contracts. The Act does not define that phrase.
Excluded: regulated sellers
Banks, trust companies, savings institutions, credit unions and their subsidiaries or affiliates; providers under Article XXII of the Public Utilities Act; parties or affiliates regulated by the Director of Insurance.
Excluded: other
Contracts made before the Act took effect, and contracts extended because the consumer asked for a change.
"Contract" and "parties"
A written agreement between two or more parties. Federal, state and local governments are not parties.
How it touches your taxes and payroll
The Act has no tax provision. A seller that refunds or credits renewal charges to use the safe harbor in Section 10(c) is adjusting revenue it already recorded, so the books need to show those amounts. Our bookkeeping and accounting and financial statements pages describe that side of the work.
