Auto-renewal problems usually start with a sign-up screen, a missed reminder or a cancellation path that is harder than the sign-up. This checklist walks through those three moments. See the rules and numbers and the overview. The Attorney General's April 2026 autopay alert describes related federal rights, such as written authorization.
The Lantern Lane Renewal Test
- List every plan, membership or contract that renews on its own, with its term length and any free trial.
- Check each sign-up screen or contract. Are the renewal terms next to the consent request, in larger or contrasting type?
- Confirm no card is charged for the renewal service before the customer agrees to those terms.
- Send an acknowledgment the customer can keep, with the terms, cancellation policy and how to cancel.
- Calendar the reminders: 30 to 60 days ahead on terms of 12 months or more, and at least 3 days before the cancellation deadline during a trial of 15 days or longer.
- Try canceling the way a customer would. If sign-up is online, cancellation has to work online.
- Write down your compliance procedures and how billing errors are refunded or credited.
Common mistakes
- Putting the renewal terms in fine print on a later page instead of next to the consent request.
- Charging the card on file before the customer agreed to the renewal terms.
- Sending no written reminder on annual or longer terms. A notice at 20 or 90 days misses the 30-to-60-day window.
- Offering online sign-up but making cancellation phone-only or mail-only.
- Having no written procedures and no refund practice, which leaves the safe harbor out of reach.
- Assuming a business customer is outside the Act. It excludes business-to-business contracts but does not define that phrase.
When to talk to an attorney
- The business sells to both individuals and companies and cannot tell whether a contract is business-to-business.
- A customer or the Attorney General alleges a violation, or a demand letter cites the Consumer Fraud Act.
- Drafting subscription terms, a free-trial offer or an online cancellation flow, or confirming that a bank-affiliate, insurance or utility exclusion applies.
A CPA cannot answer those legal questions. A CPA can help with the billing records, refunds and bookkeeping side, and works alongside the owner's attorney.
Frequently asked questions
Does the Illinois auto-renewal law apply to my business?
It applies to a person, firm, partnership, association or corporation that sells to a consumer under a contract that renews unless canceled. The text sets no size threshold, and it excludes business-to-business contracts and certain banks, utilities and insurance-regulated sellers.
When must I send a renewal reminder?
For a specified term of 12 months or more that renews for a specified term over one month, the written notice goes out 30 to 60 days before the cancellation deadline. For a free trial or promotion of 15 days or longer, a reminder goes out at least 3 days before the deadline.
Can I make customers call to cancel?
Not as the only option if they signed up online. A consumer who accepts an offer online must be allowed to cancel exclusively online, for example through an email you format or a website link.
What happens if a business breaks the Act?
The Act has no fines of its own. A violation counts as a Consumer Fraud Act violation, which allows a court-imposed civil penalty of up to $50,000 in an Attorney General or State's Attorney action, and private suits within 3 years.
Official sources
- Illinois General Assembly: Automatic Contract Renewal Act (815 ILCS 601)
- Illinois General Assembly: Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505)
- Illinois Attorney General: consumer alert on autopay rights
This page is a plain-language summary. The official source controls if there is any difference.