Vivint to pay ADT $10M to settle deceptive sales lawsuit

ADT announced on Thursday that it has reached a settlement in its lawsuit against Vivint which accused the company of engaging in deceptive sales practices to mislead ADT customers into signing long-term contracts.

Under the terms of the agreement, Utah-based Vivint will pay ADT $10 million, marking ADT’s largest deceptive sales settlement to date. ADT filed its lawsuit against Vivint last April after the company said it received complaints from nearly a thousand customers who reported that Vivint representatives made false or misleading statements in an effort to switch their security service from ADT to Vivint.  

“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,” ADT Chief Legal Officer P. Gray Finney, said in a statement. “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.”

In recent years, ADT has made a concerted effort to shine a spotlight on the issue of deceptive sales throughout the industry and has also pursued litigation against companies it believes have used such practices to trick customers. Last year alone, ADT reached settlements in a deceptive sales lawsuit against Alder and its owner, Adam Schantz, as well as in a lawsuit filed against two Monitronics dealers in Texas.

Vivint declined to comment on the case.