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| Unscrupulous companies reversing positive steps made by security industry to remove stigma of being known as "trunk slammers" |
ABC news report reaffirms need for industry action
For the businesses that make up the electronic security industry, it’s an issue that undermines all the progress we have made to date. It’s deceptive door-to-door sales tactics, and it’s still having an impact on the alarm industry. It affects the entire industry – from large national firms to the mom-and-pops who collectively make up the thousands of security businesses in the United States.
It has taken such a long time for security providers to erase the stigma of being known as “trunk slammers,” or “ambulance chasers.” Now, however, unscrupulous companies are doing everything in their power to reverse the positive momentum the professional security industry has worked so hard to attain.
To really make an impact, it will take every professional in the electronic security industry to work together to stop the companies who are making false claims and misrepresentations and damaging the reputation of others.
One company at the forefront of having a positive impact is ADT Security Services, Boca Raton, Fla. In May 2014, the company announced it would award up to $25,000 for proof of a company training its sales teams to be deceitful. To collect the reward, the evidence must result in the successful prosecution of the offending company.
Just recently, the ABC News program 20/20 aired an in-depth story nationwide, featuring an undercover report of one such sales meeting. It also featured an interview with ADT General Counsel David Bleisch, who talked about how ADT is leading the fight to protect consumers from scammers using aggressive tactics like lawsuits and the reward for proof of companies training sales people to deceive. Last year, ADT recovered over $4 million from companies as a result of lawsuits.
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| The fraud begins at the front door when customers are told false statements |
“ADT’s trusted brand is being exploited by swindlers and scammers who mislead unsuspecting consumers,” says Bleisch. “Victims end up having their ADT security systems unnecessarily replaced and are duped into signing new contracts with another provider.”
“Our goal is to raise awareness among consumers that this could happen to them so they ask the right questions,” he adds.
In October 2013, ADT obtained a permanent injunction and received damages from two companies who they claimed misled ADT customers to believe that they were affiliated with them and that their alarm systems required upgrading. These companies were also mentioned in the ABC 20/20 program.
The fraud begins at the front door when customers are told false statements ranging from “ADT has gone out of business” to “I am here to upgrade your equipment.” Sometimes the scammers claim they are affiliated with alarm panel manufacturers, such as GE, also mentioned in the report. Before the customer realizes, they have been cheated, a new security system has been installed, and they have been conned into switching service to the company committing the fraud.
“With approximately 21 million people watching the ABC News reports, we believe consumers are now fully aware of companies using deceptive sales practices and less likely to be scammed. ADT is committed to continuing to protect people from these swindlers,” says Bob Tucker, ADT media relations.
ADT offers these tips to avoid being a victim of security scammers:
- Ask for photo identification and/or a business card of who is at your door.
- Call your current security company to confirm what you’re being told.
- Don’t be pressured into agreeing to new equipment or signing a contract.
- Request literature be left behind so you can study it before taking action.
If you are in the security industry, what are you doing to get the message out? Do you tell customers they should contact you if someone tries to take over an account, or even to verify when one of your very own technicians shows up for a scheduled service call? It’s the little actions that will add up big in stopping unscrupulous alarm peddlers and keep customers safer overall.
