Illinois Amends Consumer Fraud and Deceptive Business Practices Act

Illinois recently amended its Consumer Fraud and Deceptive Business Practices Act (the Act) to address marketing materials sent to a consumer by a mortgage company not associated with the consumer’s mortgage company (referred to here as, “unrelated marketing materials”).

Under this Act, among other matters, unrelated marketing materials may not state or imply that the consumer (if not an existing customer of the sender) must respond, including, but not limited to, using the terms, among others, “urgent,” “time sensitive,” or “action required.”  The name of the unrelated mortgage company must be, (i) in the text of the unrelated marketing materials, (ii) in a larger font at the top of the materials, and (iii) on the envelope, if any.

Further, the consumer’s own mortgage company’s name cannot be used in the unrelated marketing materials unless language in the materials clearly explains that the unrelated company has no affiliation with the consumer’s mortgage company, among other requirements. In addition, the name of the consumer’s mortgage company may not be visible through an envelope window, appear on the envelope itself, or appear in an email subject line.  Finally, the unrelated marketing materials must state that the consumer’s mortgage company did not help the unrelated mortgage company obtain the consumer’s mortgage information, if true.

The Act is effective on January 1, 2024.