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Vermont

UniFirst settles with Vermont over automatic renewal clauses in contracts

The uniform and facility services company will drop automatic renewal language from its contracts, refund some early termination charges and pay the state $60,000, the Vermont attorney general's office said.

UniFirst, a company that supplies workplace uniforms, protective clothing and facility services, has agreed to settle a Vermont investigation into whether it complied with the state's automatic renewal law, Attorney General Charity Clark said Wednesday.

The law, which took effect in 2019, requires companies to give clear disclosure, notice and a chance to cancel before any contract lasting more than a year is automatically renewed. The attorney general's office said its investigation concerned the company's failure to comply with the law.

Under the settlement, UniFirst will stop including automatic renewal language in its contracts, so Vermont businesses can decide for themselves whether to keep receiving its services, the office said. The company will also notify all of its customers of the change.

Businesses that were charged for ending a contract early during the period when the company was out of compliance will get refunds, according to the attorney general's office. UniFirst will also pay the state $60,000.

Clark said the law is meant to ensure that consumers and businesses can make an informed decision about whether to continue a contract rather than automatically taking on the costs of a new term.

The attorney general's office said people who believe they were affected by a company that did not follow the automatic renewal law can contact its Consumer Assistance Program at 800-649-2424.

This brief was drafted by AI from a public agency or political press release and published by The New England Signal. Why we use AI for stories like this one.

Vermont