$8000 Automatic renewal without authorization or notice

[DennisSFO]

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.

 

[adjusterjack]

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

 

[DennisSFO]

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

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.)

 

[adjusterjack]

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.

 

[army judge]

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.

 

[Zigner]

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

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.

 

[zddoodah]

our company based in California signed up for XYZXYZ marketing database (now ABCABC acquired by JKLJKL ) .

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.

I can't find the original signed contract

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

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

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

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

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.

8.2. Automatic Renewal.

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?

if you are a consumer, California law does not give the individual any recourse for violations.

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")?

 

[Zigner]

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")?

What civil remedy would be available to the OP?

 

[zddoodah]

What civil remedy would be available to the OP?

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.

 

[Zigner]

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.

Got it - thanks.