The Illinois Consumer Fraud and Deceptive Business Practices Act, usually called the Consumer Fraud Act, is the state's main law against deception in selling and advertising. It is found at 815 ILCS 505 and reaches businesses of every size. This page is for owners of small businesses, freelancers and professionals who advertise or sell in Illinois. Our Illinois state page covers the state's tax side.
Who is covered
| Question | What the statute says |
|---|---|
| Who can break it | Any "person": individuals, partnerships, corporations, trusts, associations and their agents, employees, officers and directors (Sec. 1(c)) |
| What conduct counts | Unfair competition and unfair or deceptive acts in trade or commerce, including advertising and selling services or property (Secs. 1(f), 2) |
| Who can sue for damages | Any person who suffers actual damage (Sec. 10a) |
| Business victims | The Attorney General's small-business flyer (dated 09/25) says small businesses get the same protection as consumers; whether one business can sue another is a case-law question this page does not cover |
| Size threshold | None |
| Exemptions (Sec. 10b) | Several, including transactions specifically authorized by laws a state or federal regulator administers, but never a product or service that causes bodily injury, death or property damage; certain publishers and broadcasters without knowledge; certain unknowing statements by licensed real estate brokers or salespersons and insurance producers |
| Waivers | A waiver of the Act's rights or remedies is void (Sec. 10c) |
How it touches your taxes and payroll
The Act sets no income-tax or payroll-tax rules of its own. Two rules touch records that a CPA firm or its clients keep: card receipts (Sec. 2NN) and Social Security numbers (Sec. 2RR), and Sec. 2NNN ties the Tax Refund Anticipation Loan Reform Act into this law, which matters to tax preparers. Whether a penalty or restitution payment is deductible is a federal tax question this Act does not answer; for the payroll side, see our payroll tax basics.
Next, read the rules and numbers or the checklist and FAQs, which walks through the Receipt-to-Review Sweep. Related Illinois laws: the Uniform Deceptive Trade Practices Act and the Automatic Contract Renewal Act. Shops can also read about restaurants and retail.
Official sources
- Illinois General Assembly: Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505)
- Illinois Attorney General: Protecting Small Businesses (PDF)
- Illinois Attorney General: File a consumer complaint
This page is a plain-language summary. The official source controls if there is any difference.