ADT settled its lawsuit against Florida-based Security Networks and its Utah-based affiliate Vision Security, requiring the companies to pay $2.2 million in damages. The companies jointly market and sell systems to homeowners across the United States. Separately, ADT settled its lawsuit against California-based Security One, requiring it to pay $1.5 million in damages. The lawsuits claimed that Security Networks, Vision Security and Security One misled ADT customers to believe the companies were affiliated with ADT and that customer alarm systems required upgrading.
ADT filed a motion for contempt against Vision Security after learning about additional claims of deceptive sales practices, despite a previous preliminary injunction against the company banning such practices. Vision Security ultimately agreed to a permanent injunction, prohibiting it from using deceptive and misleading sales practices when dealing with consumers. ADT also required Security One to agree to a permanent injunction, banning the company from using such practices.
“ADT pursued these actions to help give consumers in the electronic security and automation market clarity on the products and services they choose to help protect their families, homes and businesses,” said David Bleisch, chief legal officer at ADT. “Maintaining the trusted reputation of the electronic security industry begins with companies behaving ethically.”
“We will pursue additional lawsuits against other companies that misrepresent ADT or its services to consumers,” said Hannah Lim, chief litigation counsel at ADT. Lim noted the Ohio Attorney General also recently filed a
against Vision Security for alleged misstatements to consumers about its identity.
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The ADT Corporation (NYSE: ADT) is a leading provider of electronic security, interactive home and business automation and monitoring services for residences and small businesses in the United States and Canada. ADT's broad and pioneering set of products and services, including ADT Pulse interactive home and business solutions, and home health services, meet a range of customer needs for today’s active and increasingly mobile lifestyles. Headquartered in Boca Raton, Florida, ADT helps provide peace of mind to more than six million customers, and it employs approximately 17,000 people at more than 200 locations. More information is available at