Published on October 1, 2019
In February 2015 we signed a 3 year agreement ( attached) with XO (later bought by Verizon).
This month we are giving notice of desire to terminate our service as we close our Santa Clara office.We are now advised by Verizon that we were auto-renewed in February 2018 for another 3year agreement.We will need to pay a penalty of approximately $9000 to get out of our “contract”.
There is nothing in our original contract that states we will auto renew for another 3 year term upon completion of the original term.
We never knew or explicitly agreed to an automatic 3 year renewal.Our research found that in 2009, California passed SB 340 which regulates “automatic renewals” and “continuous services.”Also California Business & Professions Code §17600, et seq. is effective beginning on December 1, 2010. Specifically, in addition to getting the consumer’s affirmative consent to clearly disclosed terms.