Glowiak Hilton protects consumers from automatic renewal fees

SPRINGFIELD – A measure led by State Senator Suzy Glowiak Hilton would require clear notice to be given to consumers before they enter contracts that automatically renew.

“From streaming services to cell phone contracts, contracts are regularly renewed without clear consent from consumers,” said Glowiak Hilton (D-Western Springs). “We must ensure consumers are aware of automatic renewal commitments before accepting the terms.”

Glowiak Hilton’s measure would require businesses to give notice to consumers before a contract renews. It would also allow consumers to terminate automatic renewal contracts more easily by phone or online – something that is often not offered by companies. Businesses that offer free trials or reduced one-time offers must also provide notice before the promotional period ends.

“Businesses take advantage of the loopholes automatic subscriptions present,” said Glowiak Hilton. “Addressing these loopholes gives people assurance that they are receiving transparency when making a purchase.”

Senate Bill 328 passed the Senate Judiciary Committee Tuesday and awaits further consideration.