KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Automatic Renewal law update GA, IL, KY / ISC schedule February 12, 2024 ************************ ISC schedule ************************ I'll be at ISC in April and again sponsoring and conducting informative meeting. Vendors who wish K&K to schedule meetings for them should contact Stacy Spector,Esq at 516 747 6700 x 304 or sspector@Kirschenbaumesq.com now. Dealers who want to participate in private meetings with me or vendors listed on The Alarm Exchange should also contact Stacy to schedule a time. Meetings [private and group meetings on scheduled topics] will be schedule for half to one hour, without charge, and conducted at the Palazzo Prestige Lounge. Times and schedule is limited so please contact Stacy soon as possible to request a topic or schedule an appointment. *********************************** Automatic Renewal law update *********************************** Three states, GA, IL and KY have new automatic renewal laws that went into effect January 1, 2024. The Standard Form Agreements have been updated to reflect these changes. Also note that the FTC is proposing new rules that would affect every state, requiring automatic renewal laws. No point going into the proposal because you don’t need to be confused – it’s not the law, yet. Here are the changes K&K believes are necessary:
GEORGIA (Ga. Code § 10-1-439.8) (our language taken from GA Residential Security all-in-one)
5. TERM OF AGREEMENT / RENEWAL:THE TERM OF THIS AGREEMENT SHALL BE FOR A PERIOD OF FIVE YEARS AND SHALL AUTOMATICALLY RENEW MONTH TO MONTH THEREAFTER UNDER THE SAME TERMS AND CONDITIONS, UNLESS EITHER PARTY GIVES WRITTEN NOTICE TO THE OTHER OF THEIR INTENTION NOT TO RENEW THE AGREEMENT AT LEAST 30 DAYS PRIOR TO THE EXPIRATION OF ANY TERM. IF THIS AGREEMENT HAS BEEN ENTERED INTO ONLINE, CANCELLATION OF THE AUTOMATIC RENEWAL MAY LIKEWISE BE MADE ONLINE, OR BY CONTACTING ALARM COMPANY AT: (Alarm Company Toll-Free Phone Number) )Alarm Company Email) (Alarm Company mailing address) AFTER THE EXPIRATION OF ONE YEAR FROM THE DATE HEREOF ALARM COMPANY SHALL BE PERMITTED FROM TIME TO TIME TO INCREASE ALL CHARGES BY AN AMOUNT NOT TO EXCEED NINE PERCENT EACH YEAR AND SUBSCRIBER AGREES TO PAY SUCH INCREASE. ALARM COMPANY MAY INVOICE SUBSCRIBER IN ADVANCE MONTHLY, QUARTERLY, OR ANNUALLY AT ALARM COMPANY’S OPTION. UNLESS OTHERWISE SPECIFIED HEREIN, ALL RECURRING CHARGES FOR 3(A)-(K) SERVICES SHALL COMMENCE ON THE FIRST DAY OF THE MONTH NEXT SUCCEEDING THE DATE HEREOF, ALL PAYMENTS BEING DUE ON THE FIRST DAY OF THE MONTH. In the event ALARM COMPANY agrees to suspend its services and Subscriber’s payments during the suspension period, the term of this agreement shall be deemed extended by the time of the suspension period. Members of the military may have the right to cancel this contract without penalty pursuant to the Service Members' Civil Relief Act. Subscriber acknowledges that this Agreement contains an automatic renewal clause. Subscriber’s Initials: _______
KENTUCKY (Ky. Rev. Stat. § 365.402) (our language taken from KY Residential Security Sale Agreement)
5. TERM OF AGREEMENT / RENEWAL: The term of this agreement shall be for a period of five years and shall automatically renew month to month thereafter under the same terms and conditions, unless either party gives written notice to the other of their intention not to renew the agreement at least 30 days prior to the expiration of any term. If this agreement has been entered into online, cancellation of the automatic renewal may likewise be made exclusively online, or by contacting ALARM COMPANY at: (Alarm Company Toll-Free Phone Number) (Alarm Company Email Address) (Alarm Company Mailing Address) After the expiration of one year from the date hereof ALARM COMPANY shall be permitted from time to time to increase all charges by an amount not to exceed nine percent each year and Subscriber agrees to pay such increase. ALARM COMPANY may invoice Subscriber in advance monthly, quarterly, or annually at ALARM COMPANY’s option. Unless otherwise specified herein, all recurring charges for 3(a)-(k) services shall commence on the first day of the month next succeeding the date hereof, all payments being due on the first day of the month. In the event ALARM COMPANY agrees to suspend its services and Subscriber’s payments during the suspension period, the term of this agreement shall be deemed extended by the time of the suspension period. Members of the military may have the right to cancel this contract without penalty pursuant to the Service Members' Civil Relief Act. Subscriber acknowledges that this agreement contains an automatic renewal clause. Subscriber’s Initials: ______
ILLINOIS (815 ILCS 601/10) (our language taken from IL Residential Security Sale Agreement)
5. TERM OF AGREEMENT / RENEWAL: The term of this agreement shall be for a period of five years and shall automatically renew month to month thereafter under the same terms and conditions, unless either party gives written notice to the other of their intention not to renew the agreement at least 30 days prior to the expiration of any term. After the expiration of one year from the date hereof. If this agreement has been entered into online, cancellation of the automatic renewal may likewise be made exclusively online, or by contacting ALARM COMPANY at: (Alarm Company Toll-Free Phone Number) (Alarm Company Email Address) (Alarm Company Mailing Address) ALARM COMPANY shall be permitted from time to time to increase all charges by an amount not to exceed nine percent each year and Subscriber agrees to pay such increase. ALARM COMPANY shall provide Subscriber with the recurring charges that will be charged to the Subscriber's credit or debit card or payment account with a third party as part of the automatic renewal contract, and that the amount of the charge may change, if that is the case, and the amount to which the charge will change, if known; and the length of the automatic renewal term or that the service is continuous, unless the length of the term is chosen by the consumer. ALARM COMPANY may invoice Subscriber in advance monthly, quarterly, or annually at ALARM COMPANY’s option. Unless otherwise specified herein, all recurring charges for 3(a)-(k) services shall commence on the first day of the month next succeeding the date hereof, all payments being due on the first day of the month. In the event ALARM COMPANY agrees to suspend its services and Subscriber’s payments during the suspension period, the term of this agreement shall be deemed extended by the time of the suspension period. Members of the military may have the right to cancel this contract without penalty pursuant to the Service Members' Civil Relief Act. SUBSCRIBER HEREBY SPECIFICALLY ACKNOWLEDGES AND AGREES TO THE AUTOMATIC RENEWAL PROVISION. Subscriber to Initial: ________
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