Illinois automatic renewal law for dining clubs and memberships

Illinois has an automatic contract renewal law for sellers who offer a product or service under a contract that renews on its own unless the consumer cancels. A restaurant that sells a dining club, a wine club, a coffee subscription or an annual pass should expect to disclose the renewal terms clearly before the sale, get the customer's consent before charging, send an acknowledgment and let an online customer cancel online. The law has been amended, so read the current text for the details.

What does the law cover?

The law applies to sellers that offer a contract which renews on its own for a consumer. A monthly coffee club for guests, an annual membership that gives discounts or a wine of the month plan are all the kind of offer it describes. A single prepaid dinner or a gift card is not a renewing contract. If you are not sure whether an offer is covered, treat it as covered, since the compliance steps are cheap.

What must you disclose?

You must present the automatic renewal terms clearly and conspicuously before you fulfill the contract. Put them beside the price and the button that completes the purchase, not in a link at the bottom of the page. State the renewal period, the price, how the price may change and how to cancel. If the first month is free or discounted, say what the price will be after it.

What consent do you need?

You must obtain the customer's consent before you charge a card for the renewal terms. A pre-checked box is a weak form of consent. A clear action by the customer, such as ticking an unchecked box that states the renewal terms, or typing their name beside the statement, is better and leaves a record you can produce.

What must you send after the sale?

You must provide an acknowledgment that includes the automatic renewal offer terms, the cancellation policy and information on how to cancel. Send it by email at once, and keep a copy that shows the date and the address it went to. If the club is sold in person, give a printed copy at the time.

How must customers be able to cancel?

If the customer signed up online, they must be allowed to cancel online. A link in the account page or in the acknowledgment email that stops the renewal meets the intent of the rule, while a requirement to phone during business hours does not. For in-person sign-ups, offer a way that is easy and timely, such as a toll-free number, an email address or a postal address.

A worked example of a wine club

Your restaurant sells a monthly wine club for $45 that renews each month. On the sign-up page, the line beside the button says: You will be charged $45 each month until you cancel. Cancel any time online. The customer ticks a box beside that line and receives an email with the terms and a cancel link. Each month the card is charged and a receipt is sent. When the customer clicks the cancel link, the renewal stops and a confirmation is sent. If the price changes, you send a notice of the change in advance, with the cancellation steps.

Has the renewal law changed recently?

Illinois has amended its automatic renewal rules in recent years, including the notice a seller must send before a renewal deadline, and further changes have been proposed. Read the current statute on the Illinois General Assembly's website, or ask an attorney, to confirm exactly when a notice is required, especially for annual plans, and what the law says about price changes.

How do you set up a compliant club?

1. Write the terms in plain words and place them beside the price.
2. Collect clear consent and keep the record.
3. Send the acknowledgment immediately and save it.
4. Offer online cancellation with a single link.
5. Set renewal reminders for annual plans, in line with what the current statute requires.
6. Review the whole flow with an attorney once.

What records should you keep?

Keep the version of the sign-up page that was live on each date, the consent record for each member, the acknowledgment email and the date of each notice and each charge. When you change the sign-up flow, save a screenshot and the date. If a customer disputes a renewal, those records let you show what they saw and agreed to. A simple folder by month is enough for a small club, and a spreadsheet of members with their sign-up date, renewal date and cancellation date helps you see who is due for a notice.

What about refunds and complaints?

If a member says they never agreed to renew, check the consent record first. If it is missing, refund the charge and fix the flow. If it is there, reply with the date, the terms they accepted and the cancel link, and offer a goodwill refund if the amount is small. A quick and fair answer costs less than a chargeback and a complaint to the Attorney General.

More guides for your business:

• Illinois restaurant gift card law
• Illinois interchange fee law: card fees on sales tax and tips
• Illinois food handler training and food manager allergen rules

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