What is the name of your state (only U.S. law)? California
Our internet/telephone carrier auto renewed our service contract for another 3 years without notifying us. Is the contract valid? I was told companies cannot auto renew service contracts. Is there a way to fight this?
What you were told about companies not being able to have automatic renewal service contracts is incorrect. They can.* But to have an automatic renewal clause in a contract, the business must follow California's conditions on automatic renewals.
Here is a link to Business and Professions Code, Sections 17600-17606, California's law on automatic renewals:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=17001-18000&file=17600-17606
Essentially what the law says is that a business that offers services with an automatic renewal clause in their contracts must have that renewal clause prominently displayed in the contract and in clear language that a consumer can understand. The consumer must specifically consent to these automatic renewal terms in the contract prior to the consumer being charged. And the company must provide the consumer with an acknowledgement form with information for the consumer on how to cancel the agreement (with a toll-free number or email address or another easy way for the consumer to contact the business).
There have been a class-action or two in California against businesses that have failed to meet their legal requirements. Whether your company has met all of the requirements would require a review of your contract.
*there are a few businesses that are exempt from the law but internet service providers are as a rule not exempt
