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Zachary
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I signed a contract with an ISP called Towerstream and they

Customer Question

I signed a contract with an ISP called Towerstream and they tacked an auto-renewal clause on their contract that I missed. (It was NOT in a different font, etc. as stated in SB940). I am trying to get out of the auto-renewal as the initial term of the contract is over, but there is an exception for FCC regulated companies. I'm not sure if Towerstream is regulated by the FCC since they are a wireless provider, not a wired provider. I know they aren't regulated by the CPUC but I don't know if they qualify under the exception.

Furthermore, does the exception completely remove the requirements of SB940 (different font in contract and notification prior to auto-renewal) because they did not meet either of these requirements.
Submitted: 10 months ago.
Category: Business Law
Expert:  Zachary replied 10 months ago.
Hi,

Thank you for your question.

The law which you are referring to is actually located in California BUSINESS AND PROFESSIONS CODE SECTIONs 17600-17606.

The exception to the rule regarding FCC regulated businesses does not apply in this situation because internet service providers are not regulated by the FCC. http://www.fcc.gov/encyclopedia/faqs-internet#complaint

Accordingly, you are entitled to terminate the contract immediately as the automatic renewal clause is invalid under state law.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am compensated by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Best regards,
ZDN
Zachary, Attorney
Category: Business Law
Satisfied Customers: 3825
Experience: Internationational Commercial Attorney
Zachary and other Business Law Specialists are ready to help you
Customer: replied 10 months ago.

Zachary,


 


One quick follow-up:-in the following it indicates "consumer":


 


17602. (a) It shall be unlawful for any business making an automatic renewal or continuous service offer to a consumer in this state to do any of the following


 


And then it lays out what can't be done (and they violated it by not having the auto-renew language in a separate font) but then it defines consumer as follows:


 


(d) "Consumer" means any individual who seeks or acquires, by purchase or lease, any goods, services, money, or credit for personal, family, or household purposes.


 


This does not cover businesses. I'm a little concerned about that section.


 


Lastly, any recommendation on a law firm in CA that might specialize in this and that can write a letter for me to Towerstream?

Expert:  Zachary replied 10 months ago.
Correct. If you are a business, then you will not be able to utilize this section of the law unfortunately. There is no such protection under California law for business to business automatic renewal clauses.

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