ADT ALARM SYSTEM
ADT agreed to settle charges by the FTC that the home security company had misrepresented that some of its paid representatives were actually independent, third-party reviewers. The company, which didn't admit to any wrongdoing, has agreed to change its business practice.
(PRNewsFoto/ADT)
ADT Security Services has agreed to a settlement with the Federal Trade Commission, which had accused the home security company of saying that certain experts who reviewed its safety and technology were independent reviewers.
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The FTC had alleged that in fact, ADT had paid the reviewers for the endorsements and demonstrations aired on news programs and talk shows.
ADT admitted no wrongdoing, but according to the settlement, will no longer pay for "expert" endorsements without making clear the reviewer's connection to the company. ADT, which is based in Boca Raton, Fla., also agreed to immediately remove past reviews, endorsements or demonstrations made by paid representatives from its web site.
ADT also must review and track what its paid representatives say on TV, radio, blogs and web sites. If they find any misrepresenations, ADT agreed to stop paying those representatives.
I wrote last year about other questionable claims that alarm company Vivint, which formerly operated as APX Alarm Security Solutions, had made as they went door-to-door looking for business.
Now's the time consumers are more likely to get more of those high-pressure pitches on their front porch and here's some advice on how to slow those sales down:
Clock's ticking: Salespeople must identify who they are, their employer, what they're selling and the price -- all within the first 30 seconds. They also must ask whether you're interested. If you're not, they must leave.
Ask for ID: Check badges or ID cards and don't be shy about calling the company they supposedly work for. Companies relying on door-knockers often have tools on their website to check badge numbers. While you're online, check the company's record through Google, the Oregon Department of Justice and the Better Business Bureau.
Clear on cash: Read the contract and listen to the pitch to be sure the numbers add up. Ask for both monthly charges, one-time fees and the grand total over the life of the contract. Then check those are the numbers you see on the contract (read: Get that contract!).
Cooling-off period: Companies that sell you products or services worth $25 or more at your home, a convention center or hotel must give you three days to cancel. The salesperson and the contract you receive must describe this right and the process.
If you decide to cancel, send a letter through certified mail to prove you've hit the deadline.After the order is canceled, the company has 10 days to return all paperwork, refund your money and return or remove any products. Find more on the so-called cooling-off period at the Federal Trade Commission.
-- Laura Gunderson