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Online email service will not honor annual contract

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rvonder

Junior Member
What is the name of your state? Virginia

In February 2007, I subscribed to an online email service. The company offered only annual plans at that time. I registered via the company's website and paid in advance for the entire 12 months using a credit card; my subscription ends on February 23, 2008.

The company (located in Kings County, Washington) recently announced that they were updating their servers to run a newer version of the Microsoft email software. So right now, they are delivering services on both the original version (2003) as well as the new 2007 version. They simultaneously announced a huge price increase (more than double their current rates!) and changed to a month-to-month term. Annual contracts are no longer offered.

I had expected that the company would honor the remainder of my prepaid contract, and that I would be faced with the price increase on my renewal date. But instead, I received an email stating that the 2003-version servers I currently access would be "shut down in the very near future", and that all customers needed to register for an account on the new 2007 system. They also said that remaining prepaid balances (for me, 5 months) would be "applied to my new 2007 account". The catch is that I would have to immediately begin paying the 2x higher prices. In effect, they have shortened my annual contract by more than 2 1/2 months!

Shouldn't the company be required to provide the contracted services at the agreed-upon prepaid price for the full annual term? They are not going out of business, and they are still offering services equivalent to what I now use. They are merely using this "upgrade" as an excuse to walk away from their annual contract commitments, while demanding that all those customers pay twice as much for the remainder of their annual contract term.

Isn't this an illegal breach of contract? I have already written them to demand that they honor the agreement, but the only thing they're willing to do is a pro-rated refund of my remaining balance. I don't want a refund; I simply want them to deliver what they promised! Is there a way to force them to do so? What court would have jurisdiction over something like this?

Any advice welcomed... and this isn't just for me; there are hundreds of other upset customers of this company who are discussing this exact issue in another online forum.

Thanks!
 


racer72

Senior Member
1. It's King County, not Kings County.

2. Post the entire section of the contract that deals with changes in the service agreement. There is no way to answer your questions without this information.
 

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