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.

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5 Responses to “Vivint to Pay ADT $10 Million Over Deceptive Sales Lawsuit”

  1. Marcus says:

    Well.. Why is it that there are thousands and thousands of people claiming ADT deceived them to sign a contract? Read the reviews on ADT worse security company in entire industry

  2. Dennis says:

    Vivint did the same thing to my elderly father. He is over 90, has dementia and is legally blind. They told him he only had to pay a one time fee of $40. He agreed to let them install a new system even though he already has an older one. The salesman is clearly a scammer. And it sounds like the whole company is as well. When I found out, I ripped the equipment off the walls, ceiling and windows and made them come get it. They promised to reverse charges off the credit card which I have not been able to verify since it was just this afternoon. I’m glad to see that ADT is being proactive in keeping the industry honest.

  3. Don McCluster says:

    You left out in this article that ADT LOST its suit against Alder for deceptive sales tactics. You’re own article is deceptive in the way it presents ADTs settlements.

  4. Bruce Rumph says:

    It did not lose it’s suit against Alder. haha Alder is supposed to pay them $5M and hasn’t made a payment, so they are getting sued even more on breach of settlement.

  5. Sandra Burch says:

    Well they continue this practice to this day!!! Misleading Consumers/ Breach of Contracts. Spent hours either being transferred from person to person or on hold/ignore for HOURS!!!! Still no resolution. They may have more lawsuits on their hands as my attorney is eager to take on just such a case. We need a new NEWS headline anyway!!

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