Vivint, Inc. to Pay $375,000 to Resolve Allegations of Deceptive Advertising and Sales Practices

February 12, 2015

ATLANTA, GA – John Sours, Administrator of the Governor’s Office of Consumer Protection (“GOCP”), today announced that Utah-based home security company Vivint, Inc. (formerly doing business as “APX Alarm Systems”) has entered into a settlement with GOCP to resolve problems the agency has found to stem from what it believes to have been deceptive marketing, advertising and sales practices. 

Vivint, Inc. provides home security, home automation and energy management devices and systems, primarily via door-to-door sales.  GOCP believes that in the process Vivint committed multiple violations of the Georgia Fair Business Practices Act, including:

  • Misinformed consumers by significantly inflating the quoted value of equipment and services;
  • Advertised that the energy management package and services would result in specific savings off consumers’ utility bills, but could not substantiate the savings claimed;
  • Advertised that implementing the Vivint home security system would allow consumers to save up to 20% on their homeowner’s insurance costs, but was unable to substantiate the likelihood of consumers’ achieving those savings;
  • Misinformed or failed to provide full terms and conditions pertaining to its cancellation, relocation and auto-renewal policies;
  • Advertised that consumers who “call now” could receive certain free or discounted services or products, when, in fact, the offer was not time-limited.

In resolution of these allegations, Vivint, Inc. has entered into an Assurance of Voluntary Compliance with GOCP requiring it to bring its advertising and sales practices into compliance with the law and to pay $375,000 in civil penalties and investigative expenses.

“Consumers have the right to make informed choices about the products and services they are purchasing,” says Mr. Sours. “We intend for this settlement to send a strong message to companies that try to take advantage of consumers by persuading them with false or misleading information.”