ADT Security Services has been hit with a class action lawsuit on behalf of current and former customers which alleges that they violated consumer protection laws. Allegedly, the company unlawfully imposed early termination fees and increased alarm monitoring fees without proper disclosure to consumers.
Allegations Posed in the Class Action Suit
The ADT class action lawsuit was filed on behalf of current and former customers who were charged or subject to an early cancellation fee, as well as those whose rates were increased or subject to increase without proper notice. According to the suit, ADT charged its customers early cancellation fees which did not serve to compensate the company for any actual costs related to the termination, but were instead utilized to deter consumers from using competitors’ services. These fees violate consumer protection laws of California, Illinois and a number of other states, according to the allegations.
ADT unilaterally imposed the unjustifiable early termination fees, even when it failed to carry out the services promised in its contracts, the suit claims. Furthermore, consumers who enlisted ADT only as a monitoring service for previously-installed systems were also charged the fees when breaking their contracts prematurely, resulting in unjust enrichment to the company. Additionally, it has been alleged that ADT unilaterally and unlawfully increased rates for consumers without proper notice or disclosures and relied on fine print to exercise its “right” to impose these rate increases.