August 18, 2011
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smart phone technology
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Question
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Ken
As you are aware, smart phone technology has become one of the most rapidly expanding markets. Alarm Control Manufacturers are taking full advantage of this technology and releasing virtual end user interfaces that use smart phones and other devices. With this change in technology, what suggestions do you have in regards to the changes required to the alarm monitoring contracts.
Special considerations have to be made with regards to the increased liabilities.
We now have end users receiving and responding to alarms on their smart phones and other personal devices. This creates potential scenarios for failure and need to be addressed within the contract.
Any assistance or guidance is appreciated
Thank you
Dave Lavoie
Damar Security Systems
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Answer
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New technology did, finally, warrant a new contract. The Subscriber Enabled Monitoring Service Contract, like all of the Standard Alarm Contracts this contract contains all of the protective provisions commonly found in a properly worded alarm contract. There are several provisions unique to the "self" monitoring aspect of the contract services.
It is important that the subscriber knows that there is no central station monitoring provided. For that service use a Monitoring Contract.
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comment on sales tax
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I used to think the sales tax collection situation was a nightmare in New Jersey (years ago) and then when the state simply said "all alarm work in taxable and not part of capital improvement to real property" I felt it was another way to dig into our (and our customers) pockets. But after reading about Florida and New York sales tax issues, collecting tax on everything is really simple (except tax exempt groups where I have to pay sales tax on the products used).
Glenn Smith
Owner Alarm Service Co. of N.J.
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comments:
Re: just when you thought it was safe to go in the water August 6, 2011[see below]
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Ken
You said it all in one sentence. "Reading these emails daily is another good way to stay on top of your game in this industry"
For those who don't, they are missing a valuable service that you provide.
Regards
RON PETRARCA
Electronix Systems
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Well said Ken;
Keep up the good work.
Brien
ALLIANCE SECURITY SYSTEMS
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just when you thought it was safe to go in the water August 6, 2011
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Question
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Dear Mr. Kirschenbaum,
My name is ANON and I found your name on the Internet while conducting research on deceptive business practices pertaining to alarm companies. I don't have any experience with class action suites, so I thought perhaps you might be willing to lend your advice to guide me in the right direction.
I am attaching a slew of documents [I didn't open them] that will explain my argument and why I feel that the contract clause of automatic renewal is a deceptive business practice in favor of the alarm company. I am told by the alarm company that the automatic renewal clause is to protect the customer. I do not see it that way and would like to file a class action suit. There are tons of others who feel the same as I do that this is not in the consumers best interest because if it was, then the service would be month-to-month with the ability to cancel, not 30-days before the end of the contract and then making it impossible to cancel for one-year. I have fought this all the way to the State of Illinois' Attorney Generals Office, but to no avail.
Your time and attention would be greatly appreciated.
Anon
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Answer
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I get unsolicited questions from subscribers and the general public all the time; phone calls too. The other day someone caught me in a particularly foul mood and I asked if there was a sign on my door that said "free advice"; he hung up on me!!
I am asked how to get out of contracts; how to sue for losses; how to complain to license and consumer departments. I thought I'd pass this one along just to let all you alarm company owners know that while you're taking a few moments to relax, someone is out there looking to destroy your day, your week and your company.
The good news is that I don't assist or represent consumers against alarm companies, and rarely alarm company against alarm company. The industry keeps me busy enough. The bad news is that plenty of attorneys will handle those matters. Class actions or almost any action taken by an attorney general or enforcement agency can be costly to defend, and potentially damaging.
What's the point? You're not alone out there. You need to be careful, and conduct your business in a prudent and lawful manner.
As far as automatic renewal, it's fine and it's necessary. No subscriber wants its alarm service to end at the end of the contract term, especially without notice, and that's exactly what would happen without some auto renewal feature. If you get a subscriber who wants no auto renewal you might want to accommodate them. Let the contract term come to an end with no notice requirement, and then shut off service at the designated time. Let them know that's what they are demanding in the contract and how stupid they are.
More and more states have some restrictions on auto renewal, so check your state periodically. Start here https://www.kirschenbaumesq.com/autorenewal.htm.
By the way, reading these emails daily is another good way to stay on top of your game in this industry. And unlike subscribers who can't get free advice, you can, just by writing in.