My friend would say, "It’s an amazing thing" and with each customer calling me complaining about their carriers, providers, alarm companies and other services I can't help but say the same. In the past couple of months I've had the same calls about the same complaints--automatic renewal clauses.
Carriers and MSPs and providers will write into their contracts automatic renewal clauses. The Canadians had a stink about this in their regulatory commission and you can read the fine print of the 59 points here. Last year, Network World published: Automatic term renewals: Read the fine print.
Consumers and even non-profits have some protection against automatic renewals. Accordingly these folks will label the practice of automatic renewal as unfair. For businesses seeking relief from a carrier, ISP or MSP contract that has auto-renewed, you can fight it or pay it and forget it.
Are automatic renewals fair? Some argue that the automatic renewal clause is a service to their customers to prevent loss of service. Some businesses argue it's unfair namely because they forgot, didn't know about the clause in the contract or didn’t receive "fair" notice from their provider. Stuffing a notice in a bill isn't what I'd call fair notice but then how well companies think they handle customer service is often left to some survey or company handing out rewards recognizing companies. Remember when these dirt bag companies from around the globe and within the US would send bills for directory listings and Telex/TWX directories? Accounting paid them and paid them every year--they were paid very well and the benefit to those companies that paid was zero. Fair notice isn't printing a note on the invoices that the contract for services is about to expire--as I said to someone over at the Attorney General’s office and Maryland PSC, "do you read all the information on your phone bills?"
Maybe you’re one of the few that doesn't put "automatic renewal" clauses into your contracts but I wonder how many customer companies strike these clauses out? Would it be too much to ask that the customer be sent a letter via certified, registered or even priority mail informing them that their contract will automatically renew in 90 days? Still, providers make a point that customers forget and that they are responsible. Which is worse, no automatic renewal clause and loss of services or automatic renewals with loss of negotiation?
