Vivint to Pay ADT $10 Million Over Deceptive Sales Lawsuit
ADT says Vivint used deceptive sales practices to mislead ADT customers into signing long-term contracts.
BOCA RATON, Fla. — Vivint has agreed to pay ADT $10 million over a lawsuit that alleged the Utah-based company used deceptive sales practices to mislead ADT customers into signing long-term contracts.
The agreement marks ADT’s largest deceptive sales settlement to date. In 2017, ADT reached settlements in a deceptive sales lawsuit filed against Utah-based Alder and its owner, Adam Schantz, and in a deceptive sales lawsuit filed against two Monitronics dealers in Texas.
“ADT is a brand trusted five times more than any other security company. When others misuse that trust to prey on innocent consumers, it is despicable. We hope these lawsuits and ensuing settlements send a strong and clear message that deceptive sales practices must end,” says P. Gray Finney, ADT chief legal officer. “Not only does it harm our customers, it also harms the value of having a trained security professional in the home, which is how most reputable security companies operate their businesses.”
ADT filed its lawsuit against Vivint on April 4, 2017 in the U.S. District Court for the Southern District of Florida after receiving complaints from nearly a thousand ADT customers who stated Vivint made false or misleading statements to switch their security service from ADT to Vivint, according to the company.
Vivint has also reached settlements with a number of state Attorneys General regarding allegations of deceptive sales practices.
Since 2013, ADT has been successful in lawsuits filed against several other companies for misleading its customers when attempting to solicit business, and it has obtained court orders prohibiting those companies from using deceptive sales practices, along with monetary relief.
“ADT will continue to protect its customers and will pursue legal action against companies that choose to misrepresent themselves to deceive those customers,” says Finney.
ADT has created a resource for anyone with questions about sales scams in the security industry, or anyone who has been a victim of a sales scam, which can be found here.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.
A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!