TRENTON, N.J. — Vivint Smart Home, Inc. and its installation affiliate Smart Home Pros Inc. will pay $200,000 and implement significant reforms to settle allegations of deceptive and unlawful practices in connection with the sale and installation of home security systems, New Jersey officials announced Wednesday.
The settlement, reached through an Assurance of Voluntary Compliance (AVC) with the New Jersey Fire Alarm, Burglar Alarm and Locksmith Advisory Committee, follows years of consumer complaints alleging misleading sales tactics, contract confusion, billing issues, and false claims made by sales representatives.
The Utah-based company, formerly known as APX Alarm Security Solutions, Inc., has also agreed to change several business practices to address the concerns. The AVC includes provisions prohibiting false statements about special deals, misrepresenting a takeover of a consumer’s current alarm service, and misleading contract terms. Vivint must now clearly disclose all costs and cancellation penalties before contracts are signed.
“New Jersey is committed to protecting consumers from deceptive and unlawful business practices, especially when it comes to services like home security,” said Attorney General Matthew Platkin.
Under the agreement, Vivint must also ensure that employees are properly licensed, display company identification during sales visits, and follow construction code regulations. Sales representatives must wear visible company identification, and consumers must receive clear contract disclosures, including installation and termination fees.
The consumer complaints that prompted the investigation date back to 2008.