ADT announced a settlement in its lawsuit against Vivint Inc., which alleged that Vivint used deceptive sales practices to mislead ADT customers into signing long-term contracts.
The agreement calls for Vivint to pay ADT $10 million. ADT says it is their largest deceptive sales settlement to date.
ADT says it filed its lawsuit against Vivint on April 4, 2017 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.
Vivint has also reached settlements with a number of state Attorneys General regarding allegations of deceptive sales practices, says ADT.
In 2017, ADT reached settlements in a deceptive sales lawsuit filed against Alder and its owner, Adam Schantz, and in a deceptive sales lawsuit filed against two Monitronics dealers.
“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.”