ATLANTA, Oct. 27, 2009 - According to a statement issued last week by the Electronic Security Association, the California Alarm Association was recently successful in securing a blanket exemption for its members from a bill that is currently in the California Senate.
The bill, SB 340, prevents automatic contract renewals and requires any business that provides customers with an automatic renewal or continuing service option to clearly disclose the terms of that offer to the consumer, as well as obtain their consent.
The CAA successfully argued that automatic contract renewal policies for alarm contracts are necessary for the safety of customers and that the industry is already by statutes under the state’s Alarm Act.
"The alarm industry must always have a contract in force for the services to be provided because there could be the possibility of an emergency or a dangerous or life death situation occurring," said Jon Sargent, past president of the California Alarm Association and industry relations representative for ADT in the West. "Automatic renewals ensure that alarm services will continue to be provided until the customer or the alarm company announces that the service will be canceled at a certain date in the future."
According to Sargent, California already has strong regulations and licensing standards for the alarm industry in place and the Senate bill would have only served to an extra burden to the industry in the state.
"All of us (in California) who work for alarm companies have background checks and are fingerprinted," he said. "If we sell, service, maintain, install or do just about anything you can think of in the alarm business, we have to be registered with the state."