Ongoing service contracts, whether for lawn care, anti-virus software updates, cell phones or cable television, are modern conveniences that make life more enjoyable. Many service providers are genuine and upfront in their terms and conditions.
Be aware, though, of a practice called “unilateral contract amendment,” which means a service provider makes changes to your contract without telling you in advance or seeking your consent.
Under the Consumer Protection Act, 2002, a company may not bill you for goods or services you did not request, or for goods or services different from what you agreed to under the contract. You don’t have to pay for these goods or services, and if you have paid already (e.g. through automatic debit of your bank account), you can demand the return of that money.
Under the law, a company may also not change, renew or extend a consumer agreement without your permission. If the contract and the law permit it, a company can renegotiate a contract with you in person. A smaller number of specific agreements under the act can be amended by providing the consumer with clear notice of the proposed changes. The company must also give the consumer the option of getting out of the proposed change to the contract. To do this, the company must provide the consumer with a clear notice of the intended change. If the company hasn’t followed these regulations, the change is not considered made.
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