Think this is a hot topic? I've been interviewed twice this month by national magazines about this issue. My web site [which I need to update] identifies at least 10 states with automatic renewal statutes. http://www.kirschenbaumesq.com/autorenewal.htm
The alarm industry is not the only one to use the automatic renewal provision. We are all parties to contracts that automatically renew - in fact I am considering starting a few class actions myself. But let's stay on point.
I've warned you that automatic renewal statutes are going to become more popular and be enacted in more states as time goes on. I've suggested that your automatic renewal be limited to month to month because most statutes except that period from any type of notice requirement. I've also suggested that it would be the better practice to get new contracts signed rather than depend upon the automatic renewal provision. Update your contracts at https://www.kirschenbaumesq.com/alarm2.htm
There are a number of problems with not complying with automatic renewal statutes. Unenforceable contracts is the least of your problem (unless you get sued for a loss and you can't rely on the contract protective provisions). You may face charges by your state's Attorney General [or other agency] for deceptive business practices. That could result in you having to notify all your subscribers that they have the right to cancel and the right to a refund for any money you received during the renewal period. You might also face a class action lawsuit.
Bloomberg LP is in the business of providing news, financial information and services to its subscribers, one of whom was Bruce Ovitz, an Illinois resident. When Ovitz tried to cancel his subscription he was advised that he was in renewal and could not cancel and if he tried Bloomberg would pursue him for breach and notify credit agencies, which would jeopardize Ovitz' credit standing. Bloomberg LP is a Delaware limited partnership with its principle office in New York. Ovitz sued in New York, under New York law, and claimed that Bloomberg violated New York's automatic renewal statute by failing to give the required notice of renewal. It was alleged that it is Bloomberg's policy not to give the required notice.
The lawsuit was brought as a class action and Bloomberg's motion to dismiss was denied. I am not going into the details, which you can read at http://www.kirschenbaumesq.com/newyork22.html
Law makers considering legislation that deals with automatic renewal statutes should understand that while the alarm industry is not the only one to employ automatic renewal provisions in contracts it may be an industry that needs to include those automatic renewal provisions for the benefit and safety of the public. Consider this. How much harm can come from your television, magazine, telephone service, laundry service, garbage removal, book subscription, membership to clubs, etc (because the list is endless) terminating without notice because the contract ends? Well now consider that without an automatic renewal clause your security system, fire alarm, climate control, filtration alarm, etc., service terminates without notice. It just stops, just like the contract term. There may be a lot more than inconvenience that follows. Might be more than just missing your favorite TV show or not getting your magazine. Well, that's what will happen without the contract continuing - so that's one reason alarm contracts contain, at the very least, a month to month renewal.