Vivint to Pay ADT $10 Million to Settle Deceptive Sales Lawsuit
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.”