Automatic Renewal Clauses (“ARCs”) can be golden for business. But for all their perks, ARCs are notoriously problematic. They may irritate customers who’ve missed the termination window, trap businesses in undesirable ongoing agreements and undermine the validity of entire contracts. And the ACCC is increasingly vigilant about their terms.
Whether your company uses or subscribes to ARCs, understanding their limitations – and legality – will keep you out of trouble. Read on for our comprehensive (and comprehensible) ARC summary.