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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? 
          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
          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.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301