ADT, SDM's 2017 Dealer of the Year, settled its lawsuit against Vivint Inc. ADT alleged the Utah-based company used deceptive sales practices to mislead ADT customers into signing long-term contracts.
The agreement calls for Vivint, SDM’s 2011 Dealer of the Year, to pay ADT $10 million, marking ADT’s largest deceptive sales settlement to date. In 2017 alone, 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,” said 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 1,000 ADT customers who stated Vivint made false or misleading statements to switch their security service from ADT to Vivint.
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,” said Finney.
SDM covered ESA's stricter code of ethics and stronger standards of conduct for its members here. To see ESA's Code of Ethics and Standards of Conduct, Click here.