As summer draws closer, the electronic security industry will see an increase in door-to-door alarm sales. The summer sales model has been quite controversial, as many alarm companies have lost customers due to deceptive sales representatives from their competitors.
I’ve spoken to many alarm companies that are completely fed up with such fraudulent sales practices, so I was intrigued when I received a press release from ADT saying that the firm would award up to $25,000 for proof that an alarm company is training it sales team to be deceitful.
So, just how does this new reward program work? In order to receive the reward, the evidence must result in the successful prosecution of the offending company. Additionally, to earn the reward, the following conditions must be fulfilled:
- ADT must receive the evidence by August 31, 2014.
- The evidence must be obtained lawfully and be admissible in court.
- The same or substantially similar evidence cannot be previously provided to ADT.
- ADT, acting in its sole discretion, institutes litigation based upon such evidence.
- That litigation leads to a judgment or settlement resulting in the payment of a monetary award to ADT.
ADT is no stranger to being exploited by deceptive sales practices. In March, police charged two Security Networks door-to-door alarm sales reps for misleading an elderly woman into updating her ADT security system.
Additionally, the firm has filed lawsuits against companies, such as Vision Security and the aforementioned Security Networks for misleading ADT customers. Last year, ADT recovered more than $4 million from the companies.
ADT representatives say the firm already has video evidence from at least one company’s training session showing rogue representatives being taught to lie during sales presentations at customer homes. With the launch of this program, ADT hopes more evidence, obtained through cell phones, will come forward.
“ADT’s trusted brand is being exploited by swindlers and scammers who mislead unsuspecting consumers,” says David Bleisch, ADT general counsel. “Victims end up having their ADT security systems unnecessarily replaced and are duped into signing new contracts with another provider. We will keep taking aggressive actions to get these bad actors off the streets.”
This is definitely an interesting way to try to shut down deceptive sales practices. Do you think this will work? Leave your comments below!