How to Tackle the Illinois Consumer Fraud Act (815 ILCS 505/1)

Halal certification requirements have now become highly regulated amidst businesses entering international markets. Each nation is now following The Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/1) directly applies to you if you’re a transporter, warehouser, or third-party logistics provider (3PL) serving manufacturers. 

This guide will help you avoid violations and ensure smooth operations, diving into:

1. What the act covers 
2. How halal comes under the Consumer Fraud Act
3. What manufacturers need to avoid under the Consumer Fraud Act
4. Quick checklist 

What is the Illinois Consumer Fraud Act?

The Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505) prohibits unfair or deceptive conduct in business dealings. The basis of the act is designed to protect consumers, borrowers, and businesses from unfair, deceptive, or fraudulent practices in trade and commerce. Specifically, the law prohibits:

• False advertising
  
• Misleading product claims
  
• Omissions of material facts
  
• Bait-and-switch tactics
  
• Misrepresenting the source, approval, or characteristics of goods or services

As the law is broadly interpreted, it means it applies to a wide range of industries, from retail and e-commerce to food, insurance, real estate, and logistics.

Who Does the Consumer Fraud Act Impact?

The Act doesn’t just apply to food brands, it also affects the following: 

Business Type	Identity Preservation Compliance Required?
Slaughterhouses	Yes
Food & cosmetic manufacturers	Yes
Cold storage facilities	Yes
Freight & transport operators	Yes
3PL and last-mile delivery	Yes
eCommerce halal product warehouses	Yes

Main Compliance Rules Under the Act

Logistics providers must follow both registration and operational protocols:

1. Annual Registration

• Register with the Illinois Department of Agriculture
  
• Provide proof of certifications for each claim (gluten-free, halal, vegan, organic) from a recognized certifying body
  
• Renewal required yearly

2. Disclosure Obligations

You must visibly disclose:

• The name of the certification body (for all vegan, non-gmo, halal, organic claims)

This must be posted:

• At physical premises (e.g., warehouse entrance or shipping dock)
  
• On invoices, bills of lading, and shipping documents
  

What Manufacturers Need to Avoid Under the Consumer Fraud Act

Risk Area	Examples
False Advertising	“100% halal” when no valid certification exists
Hidden Fees or Conditions	Not disclosing cancellation terms, renewal charges
Misleading Product Claims	Claims about safety, origin, or approval that are untrue. For all claims, get a third-party audit even if you’re a handler in a certified supply chain.
Deceptive Omissions	Failing to inform buyers of known product defects
Vegan/Gluten-Free/Organic/Halal/or Made-in-USA type Misstatements	Mislabeling without proof or third-party verification.

Illinois Consumer Fraud Act Checklist

Area	What to check	Checklist
Marketing & Claims	Double-check for truth, clarity, and disclosure
Get third-party audited and certified	Keep certs up-to-date and publicly verifiable for the following:Halal certificationGluten-free certificationVegan certificationNon-GMO certificationOrganic certification
Complaint Handling	Respond within 48 hours, document everything
Staff Training	Include in onboarding and annual compliance refreshers
Recordkeeping	Store 3+ years of consumer interaction data

Get in Touch With AHF

At American Halal Foundation (AHF), we help manufacturers, warehouses, and logistics providers ensure their operations are fully compliant with both halal certification standards and broader regulations like the Illinois Consumer Fraud Act (815 ILCS 505/1).Contact us today to schedule a free compliance consultation and protect your business from unnecessary legal risks.

Frequently Asked Questions (FAQs)

Q1: Does this law apply if I’m only transporting halal products and not selling them?

Yes. If you’re a logistics provider (e.g., 3PL, cold storage, transporter), you’re still part of the supply chain and are legally required to comply with halal labeling, registration, and segregation requirements.

Q2. Do I need to register with the Illinois Department of Agriculture if I’m a warehouse handling halal products?

Yes. Any party involved in handling or storing halal-labeled products must register and show proof of certification for halal claims.

Q3: What if my business handles multiple product types? (halal and non-halal)

 You must maintain strict segregation protocols—using separate equipment or zones, or thorough sanitation procedures—to prevent cross-contamination.

Q4: Can I face legal action for mistakes in vegan/gluten-free/non-gmo/organic or halal labeling made by the brand owner?

Possibly. If you’re part of the distribution chain and fail to verify or disclose certification properly, you can still be held liable under the Consumer Fraud Act.

Q5: How can I prove that my halal handling procedures are compliant?

Get third-party audited and maintain updated certifications, train your staff, document all handling processes, and conduct regular audits. AHF can help you implement all of these effectively with an integrated certification process combining halal, vegan, non-gmo, and gluten-free all into a single audit. Learn more by calling us at +1 (630) 759-4981.