Vivint Smart Home, CPI Security deceptive practices trial to get underway

CHARLOTTE, N.C.—Security companies Vivint Smart Home and CPI Security head to court this week over CPI’s claim that Vivint used, as outlined in the lawsuit filed in September 2020, “false and deceptive sales practices on the doorsteps and in the homes of significant numbers of CPI customers across the Southeast.”

In its complaint, CPI stated that sales representatives for the Provo, Utah-based Vivint, “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.

“To do so, Vivint tricks CPI customers into believing, among other things: (1) that Vivint has purchased or is purchasing CPI; (2) that Vivint is purchasing or “taking over” CPI customer accounts; (3) that Vivint manufactures CPI’s equipment and is present at customers’ homes simply to upgrade CPI’s system; and (4) that Vivint was sent, or is acting on behalf of, CPI. These (and other) routinely made, false and deceptive 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.”

CPI also brought to light previous claims of “deceptive practices” that resulted in class-action lawsuits against Vivint.

“To be sure, Vivint’s deceptive practices do not start and end with CPI’s customers,” the lawsuit stated. “Vivint has a long history of deceptive, scamming practices that have resulted in multiple class-action lawsuits and government actions not only in North Carolina, but across the country. Over the past decade, actions have been brought in states such as Oregon, Wisconsin, Arkansas, Wyoming, California, Ohio, Florida, Nebraska, Kansas, and Pennsylvania.

“As Vivint’s storied history of deceitful and predatory conduct reveals, Vivint is not only harming CPI and its customers, but the entire industry, leading the consuming public to distrust home alarm providers - companies that make their keep by instilling a sense of security and trust in their customers. Because all regulatory and industry efforts to date, including prior lawsuits, have failed to halt Vivint’s deceptive sales tactics against CPI and against the industry at large, CPI seeks an award of punitive damages in an amount that will make it financially unprofitable for Vivint to continue this conduct.”

Vivint delivers an integrated smart home system with in-home consultation, professional installation and support delivered by its Smart Home Pros, as well as 24-7 customer care and monitoring, serving more than 1.7 million customers.

CPI Security, based in Charlotte where the trial is taking place, is a leader in customized security and home automation solutions for more than 25 years. It is the largest privately led security provider in the Southeast, licensed in North Carolina, South Carolina, Tennessee, Georgia, Virginia, Maryland, Alabama, and Florida.