CHARLOTTE, N.C. — CPI Security Systems has filed a lawsuit against Vivint Smart Home accusing the company of tricking its customers into switching security services.
According to the filing, “Through well-rehearsed deceptive tactics, Vivint’s sales representatives posing as CPI employees or affiliates have bound CPI customers to high-priced, multi-year finance and monitoring contacts with Vivint, all the while making it impossible for customers to cancel these contracts once Vivint’s scam comes to light.”
The lawsuit says Vivint tricked CPI customers by claiming: Vivint had purchased or was purchasing CPI; Vivint is purchasing or “taking over” CPI customer accounts; Vivint manfactures CPI’s equipment and is there to upgrade the customer’s current CPI system; and Vivint was sent on behalf of CPI.
CPI claims that “these (and other) routinely-made, false and misleading statements about Vivint’s affiliation with CPI permit Vivint to take advantage of CPI’s goodwill, damage CPI’s name, and lead CPI’s customers to do business with Vivint under false pretenses,” according to the filing.
Such practices violate Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), North Carolina’s Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. § 75-1.1 et seq. and related common law of unfair competition.
Last year, the company had its solicitation permit revoked in a North Carolina town for being overly aggressive and breaking local door-knocking rules.
Just last month, ADT filed a lawsuit against the company for also allegedly employing deceptive sales tactics, including getting customers to sign Vivint contracts and install the company’s alarm systems in their homes under false pretenses.