Vivint Smart Home, Inc. and its installation division, Smart Homes Pros Inc., have agreed to pay $200,000 and implement changes to their business practices following allegations of deceptive conduct in the sale and installation of home alarm systems in New Jersey. The settlement was announced by Attorney General Matthew J. Platkin and the Division of Consumer Affairs.
The agreement follows consumer complaints dating back to 2008 against Vivint Smart Homes—formerly APX Alarm Security Solutions, Inc.—and Smart Homes Pros—formerly Arm Securities, Inc. The complaints included reports of high-pressure sales tactics, challenges with cancellations, billing inaccuracies, equipment issues, and misleading information from sales staff.
“New Jersey is committed to protecting consumers from deceptive and unlawful business practices, especially when it comes to services like home security that directly impact the safety and well-being of our residents,” said Attorney General Platkin. “Companies doing business in New Jersey are expected to comply with the laws and regulations that ensure fairness and transparency in the sale of goods and services. Those that fall short will be held accountable.”
The New Jersey Fire Alarm, Burglar Alarm and Locksmith Advisory Committee—a unit within the Board of Examiners of Electrical Contractors responsible for licensing alarm installers—maintained that if proven true, these actions would violate state law and could result in suspension or revocation of Vivint’s licenses.
“In addition to paying a significant monetary settlement, the Assurance of Voluntary Compliance requires Vivint to change its business practices to prevent future misconduct,” said Elizabeth M. Harris, Acting Director of the Division of Consumer Affairs. “We thank the Committee for acting to protect the public by ensuring that the businesses it licenses meet the highest ethical and professional standards.”
Under terms set out in an Assurance of Voluntary Compliance (AVC), Vivint agreed not to engage in misleading sales tactics such as falsely advertising special offers or discounts or making unsupported claims about local criminal activity. The company also committed not to misrepresent relationships with existing alarm providers or provide incorrect contract details.
Further requirements include full disclosure of contract terms—including length and total costs—before signing any agreements; clear communication regarding cancellation provisions; maintaining evidence for five years that consumers understood contractual obligations; honoring three-day rescission rights by removing installed systems at no cost if canceled within this period; requiring staff identification during sales calls; obtaining all necessary permits for installations; correcting code violations without additional charges; and ensuring only licensed personnel install or service alarm systems.
Senior Deputy Attorney General Steven N. Flanzman represented the Committee during this process.
