The Arizona Attorney General’ Office has agreed to enter into a consent judgment with Vivint Inc., a Utah-based home security company, to resolve claims that the company made false representations to induce consumers to sign a contract with it.
The Attorney General’s Office (AGO) alleges that the company, primarily through its door-to-door salespeople, made false representations to induce Arizona consumers to enter into contracts. Some salespeople allegedly misrepresented the length of the cancellation policy or claimed that a consumer’s previous home security company had gone out of business and that Vivint had taken over their contract.
Additionally, the AGO alleges Vivint salespeople extended consumer contracts over the phone when the consumer was not aware and did not agree to extend the contract.
Under the consent judgment that is pending court approval, Vivint will pay $75,000 for restitution to Arizona consumers. Any consumers who believe they have been harmed by Vivint’s conduct should file a complaint here by June 30, 2022, to be eligible for restitution.
The consent judgment also requires Vivint to pay an additional $285,000 in civil penalties and $40,000 in costs and attorney’s fees. Vivint also must refrain from making false representations to consumers, particularly regarding the contract terms or its relationship with another home security company. In addition, when a consumer extends a contract over the phone, Vivint must provide the consumer a contract (electronically or otherwise) to sign or electronically acknowledge the extension.