Vivint to pay $200,000, change business practices in N.J. settlement over home alarm sales
TRENTON, N.J. — The New Jersey Division of Consumer Affairs announced Thursday that Vivint Smart Homes, Inc. and its installation arm, Smart Homes Pros Inc., have agreed to pay $200,000 and implement significant business practice reforms to settle allegations of deceptive conduct in the sale and installation of home alarm systems.
The Utah-based companies, formerly known as APX Alarm Security Solutions and Arm Securities, respectively, entered into an Assurance of Voluntary Compliance (AVC) with the New Jersey Fire Alarm, Burglar Alarm and Locksmith Advisory Committee, resolving consumer complaints dating back to 2008. The committee is part of the Board of Examiners of Electrical Contractors and regulates the licensing of alarm system providers in the state.
According to the Division, complaints against Vivint included high-pressure sales tactics, contract and billing issues, misleading representations, and problems with equipment and service.
“New Jersey is committed to protecting consumers from deceptive and unlawful business practices, especially when it comes to services like home security that directly impact the safety and well-being of our residents,” said Attorney General Matthew J. Platkin.
The Committee maintains that, if proven, Vivint’s conduct could violate the New Jersey Consumer Fraud Act and state licensing rules, and potentially justify license suspension or revocation.
Under the settlement terms, Vivint must stop engaging in a range of deceptive practices, including:
- Falsely claiming special offers or discounts
- Misleading consumers about crime rates or company affiliations
- Misrepresenting contract terms, fees, or cancellation policies
Vivint is also required to:
- Disclose full contract terms and costs before agreement
- Honor rescission rights by removing installed equipment at no charge
- Ensure all alarm work complies with state code and correct any violations
- Display company ID on sales reps and obtain all necessary permits
- Only use licensed or properly supervised workers
Additionally, Vivint must retain consumer acknowledgments of contract terms for five years and file appropriate documentation for installations in accordance with the New Jersey Uniform Construction Code.
“Vivint’s agreement to change its business practices will help prevent future misconduct,” said Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs. “This resolution protects both consumers and the integrity of the alarm industry.”
The settlement was negotiated by Senior Deputy Attorney General Steven N. Flanzman, Chief of the Consumer Affairs Counseling Section within the Division of Law.
No admission of wrongdoing was made as part of the settlement.
