ADT settles its lawsuits against Vision Security and Security One over deceptive sales practices

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Thursday, October 10, 2013

BOCA RATON, Fla.—ADT announced today that it has settled its lawsuit against Florida-based Security Networks and its Utah-based affiliate Vision Security, requiring those companies to pay $2.2 million in damages. Separately, ADT also settled its lawsuit against California-based Security One, requiring it to pay $1.5 million in damages, according to a news release. 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 said it 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, according to ADT. ADT said it 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,” David Bleisch, chief legal officer at ADT, said in a prepared statement. “Maintaining the trusted reputation of the electronic security industry begins with companies behaving ethically.”

Hannah Lim, chief litigation counsel at ADT, warned in a statement that ADT “will pursue additional lawsuits against other companies that misrepresent ADT or its services to consumers.” She noted the Ohio attorney general in August also filed a lawsuit against Vision Security for alleged misstatements to consumers about its identity.