Alarm Company To Pay $950K To Settle East Bay Lawsuit
MARTINEZ (CBS/AP) -- Alarm company ADT Security Services has agreed to pay $950,000 to settle a lawsuit filed by Contra Costa County prosecutors accusing the company of unfair business practices.
Terms of the settlement were reached on Monday.
In their 2008 lawsuit, prosecutors said ADT required customers to enter into two- or three-year contracts but did not tell them up front about fee increases and cancellation costs.
Deputy District Attorney Lon Wixson said as part of the settlement, ADT has agreed to provide customers with the total price of monitoring services for the contract period.
Wixson said the company no longer increases customers' rates in the initial two- or three-year period of the contract in California.
ADT officials did not immediately respond to requests for comment.
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