This page turns the Consumer Fraud Act into a short working list, following the overview and the rules and numbers.
The Receipt-to-Review Sweep
The Receipt-to-Review Sweep is our name for a walk through the Act's specific rules, from the checkout counter to the customer contract.
- Receipts. Check that card receipts show no more than the last 4 digits of the account number and no expiration date (Sec. 2NN).
- Gift cards. For cards sold on or after 2008-01-01, check for a 5-year minimum life and no post-purchase fees, with exclusions (Sec. 2SS).
- Price lists. Tailors, barbershops, salons and dry cleaners keep their 10 most requested services priced on a list ready on request (Sec. 2TTT).
- Contract terms. Read for clauses that waive a buyer's right to comment on the seller (Sec. 2UUU) or the buyer's rights under the Act (Sec. 10c).
- In-home sales. For sales of $25 or more made in person at the buyer's home, check that the Notice of Cancellation form is handed over, unless a listed exception applies (Sec. 2B).
- Social Security numbers. Look at cards, files and web pages for numbers posted or printed where the Act bars it (Sec. 2RR).
- Recurring shipments. Check that each buyer expressly agreed before periodic shipments are billed (Sec. 2III).
Common mistakes
- Receipts that print more than 4 card digits or the expiration date.
- Gift cards that expire early or lose value to fees.
- No price list ready when a salon, tailor or dry cleaner is asked.
- "No review" clauses in consumer contracts.
- In-home sales without the 3-day cancellation notice.
- Paying phony invoices. The Act's definition of advertisement covers solicitations disguised as renewals, invoices or bills, and the Attorney General warns about phony billing and office-supply scams.
When to talk to an attorney
A CPA cannot answer these questions.
- The Attorney General or a State's Attorney sends a demand or subpoena, or a customer or business files suit.
- A business wants to sue another business or is sued by one, which involves case law this page does not cover.
- Drafting consumer terms such as refunds, gift cards, cancellation, reviews or auto-renewal.
- Selling in a regulated field where the Sec. 10b exemption may apply.
- A settlement proposes payments to the Attorney General (Sec. 7(d),(e)).
Frequently asked questions
Does the Illinois Consumer Fraud Act apply to small businesses?
It covers any person or business in trade or commerce, and the text sets no size threshold. The Attorney General's small-business flyer says small businesses get the same protection against fraud and deception as consumers.
What is the penalty under the Consumer Fraud Act?
In a case brought by the Attorney General or a State's Attorney, a court may impose a civil penalty of up to $50,000. If it finds intent to defraud, the cap is up to $50,000 per violation, and up to $10,000 more per violation applies when the victim is 65 or older.
What is the deadline to sue under the Consumer Fraud Act?
A damages action is barred unless it starts within 3 years after the cause of action accrued, meaning arose. The clock is suspended while the Attorney General or a State's Attorney has a case on the same matter, and for 1 year after.
What is the minimum life of an Illinois gift card?
For gift certificates sold on or after 2008-01-01, the expiration date may not be earlier than 5 years after issue, and post-purchase fees are not allowed. Sec. 2SS(e) lists exclusions, for example food gift certificates.
Can a CPA help with these rules?
A CPA can help with the payroll, tax and accounting side and works alongside the owner's attorney. Related reading: the Personal Information Protection Act, the Illinois state page and small business owners.
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.