KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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New auto renewal notice requirement in California   
June 17,  2025
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New auto renewal notice requirement in California
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    Sometimes I think California and New York legislatures spend their time thinking "how can we make it more difficult for businesses in our state?"  Not satisfied with the federal FTC requirement for renewal contracts California has come up with its own new law.  Yes, Kirschenbaum Contracts
TM have already been modified and updated to comply.
    Not only are you required to comply with the FTC requirement, a change we made with the 2025 version Kirschenbaum Contracts
TM, but now you have to comply with a notice provision, not too different than New York requires.  California is closer to "modern cutting edge technology" because it permits notice of renewal to be by regular mail, email or text, if permitted by the customer.  New York still requires "personal delivery" or certified mail.  I know of no New York alarm company that complies.  
    Auto renewal in the alarm contract goes to the very heart of the RMR model.  Auto renewal is also justified because the life safety services you provided should not be designed to terminate without notice, and there is no reason you should have the burden of providing that notice.  Even if you did provide the notice, which I would never approve of in contract negotiations, you won't every be completely comfortable that the notice was received by the right person.
    The new law takes effect July 1, 2025.  Update your contracts now.  As for existing contracts my guess is that they are OK until the next renewal time, then you better provide then notice.
    Thanks to Mike Miller for bringing this to my attention.
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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com