Is automatic renewal legal in Australia?

Despite being subjected to scrutiny and criticism, automatic renewal clauses are not in fact prohibited in Australia, either by statute or common law. That being said, the Australian Consumer Law contains protections regarding unfair contract terms and misleading contract that impact upon automatic renewal clauses.

How do I cancel auto renewal?

Typically, you may do so by contacting the company directly.

Read the terms of the contract carefully, paying special attention to the fine print that you may have missed when you signed up.
Highlight the period of time you have to cancel the contract before it renews automatically, if applicable.

When do unfair contract terms protections go into effect?

If the draft legislation is passed, the unfair contract terms protections will provide enforcement action to small businesses in respect of any “unfair” terms in standard form contracts and it appears likely that such protection will extend to automatic renewal clauses. These amendments are expected to be in effect by early 2016.

What should I do if my contract imposes automatic renewal?

If your contracts impose automatic renewal terms, your business must provide reasonable means for your consumers to exit the automatic renewal terms fairly. This option must be communicated in plain and intelligible language.

When does an agreement for automatic renewal expire?

Automatic Renewal. This Agreement shall be renewed automatically for succeeding terms of three (3) years each unless either party gives written notice to the other at least ninety (90) days prior to the expiration of any term of Executive’s or Company’s intention not to renew pursuant to Company’s bylaws. Loading… Automatic Renewal.

Can a company unilaterally renew a contract?

Contract terms that permit one party to unilaterally renew a contract have been identified by the Government as an unfair term experienced by small businesses, particularly in the waste management sector.

Is the term ” automatic renewal ” an unfair term?

Its not an unfair term. Automatic renewals are quite common and not void under UCTA Im afraid. Things have to be pretty bad to be void under UCTA and automatic renewals are not. They give people the opportunity to cancel and renew if people do not.

Are there any regulations on auto renewal contracts?

There are various acts and regulations that give protection to the consumer such as the Unfair Contract Terms Act 1977 (“UCTA”), the Unfair Terms in Consumer Contract Regulations 1999 and the Distance Selling Regulations. In addition, certain contracts that involve the supply of energy have outlawed auto-renewal terms.