3.21.22 – SSI – SSI Staff -PHOENIX
Arizona Attorney General Mark Brnovich recently announced an agreement to enter into a consent judgment, pending court approval, with Vivint to resolve claims that it made false representations to induce consumers to sign a contract with the company.
The Attorney General’s Office (AGO) alleges that Vivint, primarily through its door-to-door salespeople, made false representations to induce Arizona consumers to enter into contracts.
Some salespeople allegedly misrepresented the length of the cancellation policy or claimed that a consumer’s previous home security company had gone out of business and that Vivint had taken over their contract, according to the complaint.
Additionally, the AGO alleges Vivint salespeople extended consumer contracts over the phone when the consumer was not aware and did not agree to extend the contract.
Under the consent judgment that is pending court approval, Vivint will pay $75,000 for restitution to Arizona consumers. Any consumers who believe they have been harmed by Vivint’s conduct can file a complaint by June 30, 2022 to be eligible for restitution.
The consent judgment also requires Vivint to pay an additional $285,000 in civil penalties and $40,000 in costs and attorney’s fees. Vivint also must refrain from making false representations to consumers, particularly regarding the contract terms or its relationship with another home security company.
Additionally, when a consumer extends a contract over the phone, the AGO says Vivint must provide the consumer a contract (electronically or otherwise) to sign or electronically acknowledge the extension.
“Whether it’s online or in-person, consumers need to be given truthful and complete information before entering into a contract,” says Attorney General Brnovich. “We expect companies to ensure that their salespeople are honest and forthright in their sales to Arizona consumers.”
Last May, Vivint agreed to pay $20 million to settle Federal Trade Commission (FTC) claims that the company misappropriated credit reports to help unqualified customers obtain financing for its security, monitoring and IoT services.