Vivint is a home security company whose headquarters is in Utah, and it deals in home security systems, home automation technology, and solar energy residential products that can be sold across the United States and Canada. The current marketing strategy for the company is that of canvassers who go around selling the systems and enrolling more customers. Nevertheless, the company’s rather obtrusive sales approach has stirred controversies in the form of lawsuits from consumers and inquiries from the government. Many lawsuits have been brought forward about the fact that this company dupes people into entering into binding long-term agreements that they cannot fathom or perhaps cannot afford.
Another common criticism directed at Vivint is that its salespeople often provide false information about the offered products and services. For instance, customers were given reasons such as having facial recognition or license plate reading ability that are not present in the basic devices. Woe it gets, there have been some allegations that Vivint has been involved in a process of forging signatures on contracts signed by customers. Other typical complaints include lack of notice of monitoring fees, omission of contract cancellation fees, and falsification of equipment ownership. In other words, Vivint has been accused of engaging in deceptive practices with the view to entice customers into committing themselves to expensive security systems for the long term.
The same year, it was fined $3. 2 million for Federal Trade Commission violations due to the deceptive business practices by its sales personnel. The agency was concerned by complaints about the misrepresentations of contractual terms, cost, and the capacity of Vivint’s systems. For example, some customers stated that they had discovered that the contracts they had signed were more costly or had longer durations than what they had been assured by the door-to-door sales agents.
California Lawsuit
The first two named plaintiffs filed a class action complaint against Vivint in the California federal district court in October 2018. They accused the company of unlawful business practices and unfair, fraudulent, and/or misleading business acts and business practices and of violating the California Consumer Legal Remedies Act and other laws. The lawsuit accused Vivint of failing to disclose certain conditions such as contract duration and cancellation fees while overwhelming their potential customers with high-pressure immediate signings. The claimants stated that they never had enough time to study or comprehend the contents of the contracts when signing them. In 2021, the parties agreed to the terms whereby early contract terminations would be allowed but at a partial reimbursement basis, and sellers would be required to provide more information during the selling process.
Illinois Lawsuit
In another case in 2018, an Illinois woman sued Vivint for breaching Illinois state consumer fraud statutes, RICO, and contracts. Her complaint mentioned she was forced to sit through a four-hour sales presentation at her home where she was told that she would be provided with free security equipment and may cancel at any time. In reality, it was for 60 months, and $60 per month charges were written in the contract. It also accused Vivint of engaging in misleading conduct that compelled customers to enter into five-year-long alarm service subscriptions that were onerous and expensive to terminate. The legal case was resolved in late 2020.
New York Lawsuit
In New York, a class action by the consumers filed against Vivint Industries affirmed that the company had entered into unlawful contracts with the clients. The complaint stipulated that Vivint Solar Company committed fraudulent practices by offering home security systems under pretenses. It also said that the company had been charging high termination fees, effectively making it almost impossible to terminate the agreements. This complaint was dismissed and closed in 2020 after the named plaintiffs in the complaint reached a settlement with Vivint for their claims.
Utah Lawsuit
A customer in Vivint’s home state of Utah initiated a 2019 class action legal case with accusations of violations of the truth in advertising and fraud. As alleged by the plaintiffs, Vivint aimed to deceive consumers as to cost, equipment, and clients’ capability to cancel long-term alarm monitoring contracts. Also, there were no sufficient written terms and conditions provided by the company before they insisted on the customers signing on it. The Utah case also came to the same end with a settlement being reached in the case.
Canada Lawsuit
Another issue of legal concern has also been raised concerning Vivint in Canada and it has been accused of using rude and untruthful techniques in persuasion. In the year 2020, a class action lawsuit was filed in British Columbia with the allegation that Vivint reps were giving false information to get leads and exerting pressure on potential clients. Specific complaints comprised enrollments with hidden agendas, lack of clear information on the contract terms and their rights to terminate it, charges that were not previously stated, and charges that were made without consent. The case is still open and has not been dismissed against Vivint.
Altogether, Vivint has experienced increased criticisms and many legal cases about fraud and misrepresentation in the acquisition of home security customers. Some of the complaints are as basic as identity theft while other complaints are as detailed as reporting that the companies misrepresented information on products, services, and contracts customers were entering into. Despite Many cases have been resolved out of court, Vivint remains to face legal proceedings both in Canada and the United States that accuse the company of taking advantage of consumers. Consumers must be cautious about any too-good-to-be-true claim made by sales representatives, and they should redo paperwork with Vivint before signing any agreement.
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