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 – new law in Colorado. Are you good with K&K Contract May 22, 2023 ************************** Automatic renewal – new law in Colorado. Are you good with K&K Contract? *************************** Ken How does the new Colorado Automatic Renewal law affect alarm dealers in Colorado, if at all, if we are using K&K contracts? Thank you for all your helpful advice and for providing great contracts using RI (Real Intelligence). Dave Easley, owner Black Forest Home Security Systems ********************** Response ********************** I’ve been cautioning everyone about automatic renewal laws. Some of are in states with automatic renewal laws on the books, so you’re use to the law [though too many of you still ignore it]. Those of you in states with no automatic renewal laws have asked that I change the Standard Form Agreements to renew for extended periods or “like” term, and I warned against it for precisely what we are now faced with in Colorado. The Standard Form Agreements all renew month to month. Colorado, unlike other states with automatic renewal law does not excludes month to month renewal, so compliance is necessary. Here’s the Colorado automatic law requirements: The Colorado Automatic Renewal Law that became effective on July 1, 2021. This law applies to businesses that sell goods or services through a subscription or automatic renewal plan to consumers in Colorado. That would include the alarm contracts. Under the law businesses must provide certain disclosures and obtain consumers' affirmative consent before charging them for an automatic renewal or continuous service. The law requires that businesses: Clearly and conspicuously disclose the terms of the automatic renewal offer in the contract or agreement with the consumer. Obtain the consumer's affirmative consent before charging them for the automatic renewal. Provide a simple mechanism for consumers to cancel the automatic renewal or continuous service. Provide consumers with an acknowledgment of the automatic renewal terms and cancellation policy in a manner that is capable of being retained by the consumer. The law also prohibits businesses from making it difficult for consumers to cancel automatic renewals or continuous services or from failing to disclose cancellation requirements. Businesses that fail to comply with the Automatic Renewal Law may be subject to enforcement actions by the Colorado Attorney General's office, including civil penalties, injunctive relief, and other remedies. It's important for alarm companies in Colorado to review their contracts to determine whether they are subject to the Automatic Renewal Law and to take steps to ensure compliance with the law's requirements if necessary. Kirschenbaum Contract™ will be updated to comply with contract language requirements; you have to comply with the notice requirement, but if you renewal month to month, or less than one year, only one notice will be required before the renewal terms start. ********************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ************************* THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily. https://www.kirschenbaumesq.com/page/alarm-exchange ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
