1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

$8000 Automatic renewal without authorization or notice

Discussion in 'Consumer Law, Contracts, Warranties' started by DennisSFO, Sep 3, 2020.

  1. DennisSFO

    DennisSFO Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    Jurisdiction:
    California
    Hello, I was wondering if anyone has any insight into this.
    Back in July 2019 our company based in California signed up for XYZXYZ marketing database (now ABCABC acquired by JKLJKL ) .

    Names redacted as this site does NOT encourage or ALLOW advertsing for FREE!!!!


    We signed a contract with them ($9k for the first year)- signed through e-signature service and I can't find the original signed contract for some reason .

    They never sent us any communication (no emails or mail) about renewal this year ( on their website there is no button to cancel the subscription) and we had no intention to renew it. ( We are in travel business and ceased operations in April - now going to dissolve the LLC).

    So in August we get a call from collection agency trying to collect $17000 for that subscription (first year and first quarter of the 2nd renewed year).

    Seems like there are a lot of complaints about them online about this auto renewal trap (

    Do you see any ways how we can fight this auto renewal if we didn't send them 30 days notice?

    I found some references to california automatic renewal law 17600 but not sure if it apply to us in this case.
    Appreciate any input
    Dennis



    Was able to google their contract .(their customer service is horrible, nobody is able to provide us a copy of our contract and the person we originally dealt with is no longer with the company)

    8.2. Automatic Renewal. Upon the completion of the current term, whether the original or a renewed term, this Agreement shall automatically renew for a successive term equal to the length of the initial term, unless either party notifies the other in writing of its intent not to renew at least thirty (30) days prior to the end of the then-current term. Upon renewal, the Subscription Fee shall equal the Subscription Fee of the prior term, plus any additional purchases made since previous renewal (i.e. additional Authorized Users), if any. Upon renewal, the Authorized User Fee shall equal the Authorized User Fee of the prior term, plus 5% of the Authorized User Fee of the prior term.
     
  2. adjusterjack

    adjusterjack Super Moderator

    Messages:
    8,194
    Likes Received:
    2,177
    Trophy Points:
    113

    For that kind of money you should be talking to an attorney.
     
  3. DennisSFO

    DennisSFO Law Topic Starter New Member

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    Thank you adjusterjack. noted on company names. I guess I'm still trying to gather initial research and understand which kind of lawyer would help with something like this.(we have initial consultation tomorrow about general procedure how to dissolve our LLC but not sure if this lawyer will be able to help with something like this.)
     
  4. adjusterjack

    adjusterjack Super Moderator

    Messages:
    8,194
    Likes Received:
    2,177
    Trophy Points:
    113

    A lawyer who has the knowledge and experience to help dissolve an LLC also has the knowledge and experience to be able to read and analyze contracts and advise you on them.

    Ask him.
     
    justblue likes this.
  5. army judge

    army judge Super Moderator

    Messages:
    32,711
    Likes Received:
    4,910
    Trophy Points:
    113

    If I have a medical concern, I don't ask strangers what I should do.

    I make an appointment with my family physician.

    If its an urgent medical concern, I scurry to the nearest Hospital ER.

    If you have any problem, common sense suggests you consult a licensed professional in the field of your concern.

    I remain unsurprised at the lack of common sense.
     
  6. Zigner

    Zigner Well-Known Member

    Messages:
    2,476
    Likes Received:
    1,236
    Trophy Points:
    113

    Two problems for you: First, a "company" is not a "consumer" for this purpose. Second, even if you are a consumer, California law does not give the individual any recourse for violations. You could, of course, report them to the state...but that doesn't give you any immediate relief.

    As indicated, speak to an attorney.
     
  7. zddoodah

    zddoodah Well-Known Member

    Messages:
    3,948
    Likes Received:
    950
    Trophy Points:
    113

    I'm going to assume that you're referencing three separate entities here, which leads me to wonder what ABCABC and JKLJKL have to do with XYZXYZ or why your post refers to three different entities when it appears only to concern one.

    So...you don't know what it says. Right?

    I don't know. It will depend almost entirely on what the contract says.

    Assuming you're referring to section 17600, et seq. of the California Business & Professions Code, that only applies to consumer transactions and does not apply to business-to-business transactions.

    Assuming that same term is in your contract, this pretty much ends any discussion. If you didn't want to renew, you needed to affirmatively cancel.

    Of course, if you're dissolving the LLC isn't this largely a moot point? Or did you personally guarantee this contract?

    Ummm...then how do you explain B&P 17604(a) ("all available civil remedies that apply to a violation of this article may be employed")?
     
  8. Zigner

    Zigner Well-Known Member

    Messages:
    2,476
    Likes Received:
    1,236
    Trophy Points:
    113

    What civil remedy would be available to the OP?
     
  9. zddoodah

    zddoodah Well-Known Member

    Messages:
    3,948
    Likes Received:
    950
    Trophy Points:
    113

    Well...as both you and I noted, B&P 17600, et seq. isn't applicable to business-to-business transactions, so I don't understand asking about remedies that might "be available to the OP."

    The statement you made that I took issue with was that, "even if you are a consumer, California law does not give the individual any recourse for violations."

    That's simply not correct, as confirmed by B&P 17604(a), and, in a hypothetical scenario, a consumer could have a cause of action to recover any money paid pursuant to an auto-renewed contract that was in violation of B&P 17600, et seq,, to say nothing of a cause of action under B&P 17200.
     
  10. Zigner

    Zigner Well-Known Member

    Messages:
    2,476
    Likes Received:
    1,236
    Trophy Points:
    113

    Got it - thanks.
     

Share This Page