Legal Question in Business Law in New York

Verizon entraps Small Businesses in Perpetual Renewal Ad Contracts

Is it legal for Verizon to write advertising contracts (for placement in their Yellow Page adveritsing) in such a manner as to have perpetual annual renewal clauses without yearly signatures by the client ''confirming'' a request to continue service? According to the lengthy contract, the ''only'' way to cancel a contract with them is to submit that request in writing. Otherwise the ad is continued, errors and all, whether it is wanted or not. Additionally, representatives of the company are unwilling (or unable) to supply a copy of the original contract which does not have my signature on it. Another clause in the contract indicates that whoever signs the contract is considered a legal representative of my small company. Verizon is apparently aware that their contract ''traps'' many small business owners. A representative from their collection division claims that ''many'' small buisness owners fail to notice the entrapment-style clauses in their contract. I have never before had an advertising contract of this nature by other phone book companies, newspapers, radio or television. Is their a way to remedy this problem for myself and the other small business owners across the country?


Asked on 8/10/05, 10:32 pm

1 Answer from Attorneys

John Friedman Law Office of John K. Friedman

Re: Verizon entraps Small Businesses in Perpetual Renewal Ad Contracts

It's all legal. If you want to cancel, write them a letter saying you are cancelling per the contract and be sure you follow the requirements for such a notice in the contract.

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Answered on 8/11/05, 10:18 am


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