Texas Attorney General Ken Paxton announced that his office reached a settlement with Vivint, Inc. over allegations Vivint violated the Texas Deceptive Trade Practices Act during door-to-door marketing.

The nature of the allegations are specific to the door-to-door sale of home security -- namely, allegations that door-to-door agents selling on behalf of Vivint were not registered with the Department of Public Safety as required under Chapter 1702 of the Occupations Code. Vivint expressly denies the State’s allegations

However, it is still notable that door-to-door sales are on the AG's radar, especially in light of the fact that under the settlement, Vivint makes various assurances which are not specific to home security. Specifically, the assurances, which indicate these are areas of concern for the AG with respect to door-to-door sales, include:

• Vivint shall not represent that it is able to or may assist consumers in cancelling their current alarm systems services agreements with alarm systems companies other than Vivint, unless true.

• Vivint shall not represent or imply to a consumer that the consumer’s current alarm systems company has gone out of business, is no longer providing services, or has merged with another entity, unless true.

• Vivint shall not represent that it is affiliated or has merged with, or acquired a consumer’s current alarm systems company, unless true.

• Vivint shall provide all notices of a consumer’s right to cancel his or her contract as required by Chapter 601 of the Texas Business & Commerce Code.

Under the settlement, Vivint shall make a payment of $135,000.00 to the State of Texas to be allocated in accordance with TEX. GOVT. CODE § 402.007(b)(1) to the Supreme Court Judicial Fund or general revenue as appropriate, and a payment of $75,000.00 for reasonable attorneys’ fees and expenses related to this investigation, pursuant to TEX. GOV’T CODE § 402.006, which fees were incurred on behalf of the State and do not constitute an antecedent debt with respect to this litigation

See the settlement here

Tags:
Texas   Sales & Marketing   Door-to-door  

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