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CT AG Secures $5M Judgment Against Safe Home Security for Consumer Protection Violations

Safe Home Security Inc.March 8, 2022Connecticut Attorney General

Penalty Amount

$5,000,000

Summary

Connecticut Attorney General filed a $5 million stipulation judgment against Safe Home Security for repeated non-compliance with court-ordered consumer protection measures, including blocking contract terminations and misrepresenting terms. The judgment requires immediate payment of $1 million and suspends $4 million pending compliance, with an independent monitor for five years.

Remedy

Safe Home Security must pay $1 million within ten months, with $4 million suspended based on compliance. The judgment imposes injunctive relief, requires hiring an independent monitor for five years, establishes a dedicated email for complaints, and mandates good faith efforts to resolve unresolved complaints with the Attorney General's office.

Monetary PenaltyInjunctionAudit Requirement

Contract Impact

In-house legal teams should review all customer-facing agreements, particularly vendor contracts for security system installation/maintenance and direct-to-consumer service agreements. Focus on termination clauses that may unlawfully block cancellations or impose excessive fees, auto-renewal provisions lacking clear consent, warranties guaranteeing equipment functionality, and service level agreements defining response times. Representations about system reliability or installation quality in marketing materials must align with contractual guarantees. Amendments should ensure transparent cancellation processes, remove barriers to termination, and align all customer communications with contractual obligations to prevent deceptive practices.

Contract Search Terms

contract termination clauseearly termination feeauto-renewal provisionequipment installation warrantyservice level agreementmisrepresentation disclaimercooling-off periodbinding arbitration clausefee disclosure requirementcancellation policy

Laws Cited

auto-renewal statutesdebt collection statutesstatutes relating specifically to companies engaged in the residential alarm business

Violation Types

Entity Details

Entity

Safe Home Security Inc.

Also known as: Safe Home Security

Industry

Technology

Official Sources

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