Home security company Vivent to pay Kansas $500,000 for allegedly deceptive practices

A Utah-based home security company is ordered to pay $500,000 after the state of Kansas alleged it used deceptive business practices on consumers.

Kansas settled with Vivint for the money, saying that if it went to court it could prove that the company had several policies that are against Kansas’s consumer protection law.

The company’s door-to-door sales people are accused of falsely telling customers Vivint bought competing home security products, renewing contracts without consent, charging customers after they cancelled, charging more than stated in the contract, selling faulty equipment, not producing receipts and misinforming customers about their cancellation policy.

“Door-to-door transactions are an easy way for suppliers to take advantage of consumers through high-pressure sales tactics. We encourage every consumer solicited through a door-to-door transaction of any kind to thoroughly read and take the time to understand the contract before signing,” said assistant attorney general Sarah Dietz.

Vivint's legal troubles

Vivint is one of the largest home security companies in the United States, offering security cameras, smart thermostats and solar energy products. But the company has racked up millions in penalties over the past decade for violations of consumer protection laws.

It settled lawsuits with Arkansas, Oregon, Ohio and Nebraska over what those states called misleading and aggressive sales taxes. It also settled class action lawsuits for violations of the Telephone Consumer Protection Act.

In 2022, the Arizona Attorney General got a $400,000 settlement for similar claims to those made by the Kansas Attorney General’s Office. It’s also had to pay out $10 million to rival security company ADT after it claimed Vivint agents misled 1,000 customers to sign up, and was fined $20 million by the Federal Trade Commission for misusing consumer credit reports.

Vivint is owned by Blackstone Inc., the largest alternative investment firm in the world.

The settlement's provisions

In Topeka, Vivint has eight Google reviews from Topekans that are all one-star, with most reviewers complaining about their cancellation policy, credit inquiries and charging more than what was originally offered.

In addition to the fine, Vivint must change some of its practices to prevent potential consumer protection violations in Kansas. Vivint agents will now be required to allow customers to cancel their month-to-month plans by phone or email, to provide customers with a copy of renewal agreements within three business days and can’t let its employees fill out customers names on electronic forms.

Half of the money from the settlement in Kansas will go to the Attorney General’s Office for investigative fees, and the other half is set aside for consumer education at the AG’s discretion.

"Vivent commends the Attorney General for resolving this matter in an amicable manner that provides for the education of consumers in Kansas. We look forward to continuing to serve thousands of families throughout the state,” a Vivint spokesperson said.