HOME SECURITY COMPANY SETTLES CHARGES OF CONSUMER DECEPTION WITH FTC

FEDERAL TRADE COMMISSION 

FTC Approves Final Consent Settling Charges that Home Security Company ADT’s Endorsements Deceived Consumers

Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that the home security company ADT LLC misrepresented that paid endorsements from safety and technology experts who appeared as guests on news programs and talk shows were independent reviews.

First announced in March 2014, the settlement prohibits ADT from misrepresenting paid endorsements as independent reviews, and requires the company to clearly and prominently disclose any material connections in advertising for home security or monitoring products or services, and promptly remove reviews and endorsements that have been misrepresented as independently provided by an impartial expert or have failed to disclose a material connection between ADT and an endorser.

The Commission vote to approve the final order in this case was 4-0-1, with Commissioner McSweeny not participating.