Legal Question in Business Law in California
I just called to change my phone and internet service provider and was told that I am currently in a contract until 2018. I signed a 3 year agreement in 2009 and just learned that the contract auto renews for a new term unless written notice is given within 30 days of expiration. I checked the contract and sure enough, near the bottom in the fine print it mentions this.
Is this legal?
2 Answers from Attorneys
It's legal, but if you think that the provider deceived you, you can make a complaint with the Public Utilities Commission. You might call the provider and tell them that, if they don't allow you to cancel, you will take it to the PUC. Sometimes, that does the trick. Often, a provider will send you to a retention department and give you a good deal for staying.
Automatic renewal provisions in many types of consumer contracts must be set forth in "clear and conspicuous" type in the contract; otherwise they are not enforceable and the consumer has powerful remedies. However, I'm a little surprised that a phone and internet service provider doesn't well know this and hasn't brought its form contracts into line with the law (Business and Professions Code sections 17600-17606). Therefore, I can't give you an unequivocal answer without actually seeing the contract. It could be that you've caught this company doing something illegal. You might want to look up the code sections on the Internet and read the law itself and what various commentators have had to say about the law (B&P 17600-17606) and its interpretation in the courts.
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