Alarm Companies to Pay ADT Nearly $4M for Deceptive Sales Practices
BOCA RATON, Fla. — Several alarm companies have settled lawsuits with ADT in response to claims that the firms misled consumers to believe the companies were affiliated with ADT.
ADT filed a motion for contempt against West Palm Beach, Fla.-based Security Networks and its Orem, Utah-based affiliate Vision Security after learning about additional claims of deceptive sales practices, despite a previous preliminary injunction against the company banning such practices.
The companies have agreed to pay ADT $2.2 million in damages. Additionally, Vision Security, which is also being sued by Ohio Attorney General Mike Dewine for deceiving consumers, agreed to a permanent injunction, prohibiting it from using deceptive and misleading sales practices when dealing with customers.
“ADT pursued these actions to help give consumers in the electronic security and automation market clarity on the products and services they choose to help protect their families, homes and businesses,” says David Bleisch, chief legal officer at ADT. “Maintaining the trusted reputation of the electronic security industry begins with companies behaving ethically.”
Separately, ADT settled its lawsuit against Los Angeles-based Security One, requiring it to pay $1.5 million in damages for telling customers that their alarm systems required upgrading. Security One also consented to a permanent injunction, banning the company from using such practices.
“We will pursue additional lawsuits against other companies that misrepresent ADT or its services to consumers,” says Hannah Lim, chief litigation counsel at ADT.
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