Security firm to pay $50,000 to customers for deceptive practices

4 years 11 months 1 day ago Wednesday, September 02 2015 Sep 2, 2015 Wednesday, September 02, 2015 2:49:00 PM CDT September 02, 2015 in News
By: Ashton Day, KOMU 8 Digital Prodcuer

JEFFERSON CITY - Attorney General Chris Koster announced Vivint, Inc. agreed to pay $50,000 to 50 Missouri consumers who were harmed by the company's deceptive business practices, as well as $15,000 in civil penalties.

Vivint is a Utah-based company formerly known as APX Alarm Security Solutions, Inc.

Customers complained to the attorney general's office that the company exaggerated the length of the cancellation period, as well as the local crime rates. Some customers said they were misled about the consequences of changing their existing home-security contracts, while others said their contracts were automatically extended a year following the expiration date initially agreed upon.

During negotiations, Vivint agreed to take disciplinary action against salesmen that make untruthful statements and allow customers ages 70 years and older to cancel a contract within 30-days of signing. 

"Companies who want to do business in Missouri have to make it clear to consumers what they're buying," Koster said. "This agreement protects Missouri residents on an ongoing basis and returns money to consumers who were misled."

Vivint could face further legal action if guidelines set by the attorney general's office are not followed.

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