Proposed legislation that would make Illinois the first state to regulate retail business rebates was seen as a restraint that would drive business out of state, according to Rep. Norine Hammond (R-Macomb).
Hammond's viewpoint came during House debate April 23 over HB4922, sponsored by Rep. Theresa Mah (D-Chicago), which amends the Consumer Fraud and Deceptive Business Practices Act and makes it illegal for a retail business to place dormancy or post-issuance fees on stored-value rebate cards.
“We are about to impose a restriction that would be unique to the state of Illinois,” Hammond said. “So for those of us who live on the border of other states, we will indeed be sending business out of the state of Illinois, so please vote no.”
Rep. Peter Breen (R-Lombard) noted that banking institutions opposed to the bill and said said there is no such thing as a free lunch.
“If we do this, we will have a spate of retailers stop offering these cards to our consumers,” Breen said.
Breen said there is no reason to add further regulations to Illinois commerce.
Rep. David Harris (R-Arlington Heights) supported the bill, and said up to 10 other states have passed similar legislation.
“So that $50 card they gave as a rebate was probably sold to the vendor for less than $50, so it seems to me that the person who ends up holding the short end of the stick is the consumer,” Harris said.
While Rep. Mark Batinick (R-Plainfield) pointed out HB4922 could affect interstate commerce, Rep. Keith Wheeler (R-Oswego) noted the consumer should be aware of the dormancy fees listed in the fine print of the rebate disclosure, and like Breen, said the bill is bad for business.
“This is another example of Illinois getting between a purchaser and seller and making things more complicated and expensive for those sellers to do business here,” Wheeler said.
Rep. Mike Fortner (R-West Chicago) clarified that Mah’s bill was simply consumer friendly legislation, but Rep. Jeanne Ives (R-Wheaton) noted otherwise when she asked Mah if a commerce was ever accused of attempting to be untruthful by not disclosing the terms of the rebate cards.
“No,” Mah answered.
Ives said purchasers are already protected by law and the honest transaction between the consumer and commerce should be left alone.
“We should leave it at that without adding more regulation on yet another business activity here in Illinois,” Ives said. “Vote no.”
HB4922 passed 67-44 and moved to the House.
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