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Vision Security

Security companies grow fast, again in 2012

Intelligent Access Systems, Vision Security, EP Technology among security companies featured on 2013 Inc. 5000 list
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08/22/2013

NEW YORK—The 2013 Inc. 5,000 list has been released and, again this year many security companies made the list, which ranks businesses based on self-reported growth data.

Idaho AG: Door-knocking company must reform sales tactics

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Wednesday, August 13, 2014

I’ve written before about how ADT filed not just one, but two lawsuits against Orem, Utah-based Vision Security, accusing the door-knocking company of scamming customers. And I’ve also written about how Vision Security contends it is being unfairly targeted.

Now, a new settlement Vision has reached with the Idaho Office of the Attorney General paints a picture of Vision sales reps engaging in unfair sales practices in that state.

I reached out earlier this week to Vision attorney Sean Brown for that company’s comments on the settlement but I haven’t yet gotten a response.

However, according to the office of Idaho Attorney General Lawrence Wasden, Vision reached a settlement with that state after being accused of violating Idaho's Consumer Protection Act.

The settlement requires Vision “to implement significant changes to the way its sales representatives interact with Idaho consumers,” according to a July 18 news release from the AG’s office. Also, consumers who paid extra fees because they were scammed may be entitled to a refund from Vision if they submit a complaint form to the AG’s office by Sept. 8, the release said.

Here’s more of what the AG had to say in the release:

"The purchase of a home-security system is a significant investment and consumers should feel safe knowing that the people selling them are providing truthful and honest information, without hidden fees or misrepresentation," Attorney General Wasden said.

Consumers reported to the Attorney General that Vision Security's door-to-door sales representatives misrepresented the terms the company's security system contracts, and that representatives failed to fulfill their promises to "buy-out" consumers' current security system contracts.

Consumers often ended up paying monthly monitoring fees to two companies or paid large termination fees to cancel one of their monitoring agreements. Additionally, Vision Security's door-to-door sales contracts failed to provide consumers with accurate information about the time allowed to cancel contracts.

The settlement requires Vision Security to make several changes to how it does business in Idaho. For example, the company's sales representatives:

*Must wear identification that includes the sales person's name and affiliation with Vision Security.
*Must inform the consumer of his or her three-day right to cancel the agreement.*Must not tell consumers that their current alarm monitoring company went out of business or is affiliated with Vision Security.
*Must not misrepresent the number of security systems Vision Security has installed in the consumer's neighborhood or misrepresent that a consumer's home is located in a high-crime area
 *Must not misrepresent the condition or operability of the consumer's current security system.
 *Must not promise to "buy-out" a consumer's current monitoring agreement.
 

Hmmm…this list reads a lot like some new revisions the Electronic Security Association made to its code of ethics this summer in response to some new sales scams that ADT and other companies have complained door-knocking companies are using.

 

 

ADT offers up to $25K to expose security sales scams

Whistle-blowers can collect if they provide evidence leading to successful civil prosecution of offending companies
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05/28/2014

BOCA RATON, Fla.—ADT is offering as much as $25,000 to anyone willing to blow the whistle on security companies that train their door-to-door sales teams to use deceptive sales techniques, the home security giant announced this week.

Judge stays ADT’s second lawsuit against Vision Security

ADT ordered to first comply with previous settlement agreement it made with the door-knocking company in an earlier lawsuit over deceptive sales techniques
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04/30/2014

OREM, Utah and BOCA RATON, Fla.—A federal judge has put a 45-day hold on a second lawsuit that ADT had brought against Utah-based Vision Security over alleged deceptive sales practices. During that time, the two companies must follow a recent settlement agreement ADT worked out with Vision after ADT previously sued that door-knocking company on very similar charges.

ADT adds 100,000 customers in fiscal 2013 and its Devcon buy boosts its RMR, but attrition climbs to 13.9 percent

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Wednesday, November 20, 2013

Just about one year after The ADT Corp. split from Tyco International and became a stand-alone, publicly traded company, the company reported today that its RMR climbed 4.7 percent in Q4 and that the rise was helped by its acquisition of Devcon Security this summer.

Boca Raton, Fla.-based ADT, which officially became independent Sept. 28, 2012, reported its Q4 and fiscal year 2013 results today. It added 100,000 subscribers in 2013, bringing its total customer based to 6.5 million, the company said.

ADT also reported average revenue per user (ARPU) had climbed to $40.31, an increase of 3.7 percent, and said that helped increase RMR. The company also said its ADT Pulse overall take rate was at 32 percent in Q4, up from 13 percent last year due to new customers and price escalations to existing ones.

In the earnings call, ADT CEO Naren Gursahaney said, "We recently passed the 500,000 mark with Pulse customers. Just to put that into perspective for you, if Pulse was a stand-alone business, it would be the sixth largest security provider in North America. While this a major milestone for us, it still only represents about 8% of our total customer base, so we still have a tremendous opportunity to further grow our Pulse customer base."

Gursahaney also said that in Q4, "Net attrition increased by 10 basis points sequentially and 40 basis points year-over-year to 13.9 percent, with more than 100 percent of the increase attributable to higher relocation disconnects as a result of the continued recovering in the housing markets." The company is launching new programs to address attrition, which it plans to announce soon, he said.

The company’s revenue increased in Q4 by 4 percent to $846 million from $812 million, higher than the $843.8 million analysts expected. EBITDA was $431 million in Q4,  up 7.5 percent compared to the previous year.

Much of ADT’s total revenue is recurring revenue, the report said. RMR was $777 million in Q4. The company also said small business RMR growth for fiscal 2013 was 7 percent, up from 3 percent in 2012.

Just before its Nov. 20 earnings report, ADT announced this week it was defending its turf by suing Utah-based Vision Security for the second time over Vision’s alleged deceptive sales practices. The new lawsuit comes shortly after Vision and Security Networks, of which Vision is an affiliate, “settled with ADT for $2.2 million and agreed to a permanent injunction [from] engaging in similar practices,” according to an ADT news release.

Vision told me it denies ADT's allegations and intends to fight them.

The AP reported ADT’s shares closed at $42.81 yesterday, Nov. 19. Shares are down 8 percent for the year to date, the AP said.

Gursahaney predicted positive results for fiscal 2014, with revenues and RMR climbing 4 percent to 5 percent. "I'm confident the momentum we have built, coupled with the improvement programs we have implemented to address our challenges, will position us for continued revenue growth and operational improvements in 2014," he said.

ADT sues Vision—again—over alleged deceptive sales practices

Vision says it 'vigorously denies the allegations' and plans to fight them
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11/18/2013

BOCA RATON, Fla.—Just months after settling one lawsuit with Utah-based Vision Security over what The ADT Corp. characterized as Vision's deceptive sales pitches, ADT announced today that it has filed a second lawsuit accusing Vision of similar practices.

Vision wages legal battle over negative posting on Ripoff Report

The Utah summer-sales company files lawsuit saying it has been defamed, but the site says it’s not responsible for what users post on it
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10/30/2013

OREM, Utah—Vision Security, a summer-sales home security/home automation company here, is suing Ripoff Report, charging that the website is refusing to remove false and defamatory statements about Vision even after the author of the posting has since stated they aren’t true.

ADT settles its lawsuits against Vision Security and Security One over deceptive sales practices

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10/10/2013

BOCA RATON, Fla.—ADT announced today that it has settled its lawsuit against Florida-based Security Networks and its Utah-based affiliate Vision Security, requiring those companies to pay $2.2 million in damages.

Vision Security gets new $35m credit facility, new president

Loan from The PrivateBank creates new opportunities for door-knocking company; CFO Dan Noble gets promotion
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04/17/2013

LAS VEGAS—Vision Security’s new $35 million credit facility will strengthen the company’s unique “hybrid” business strategy of being both Security Networks’ leading dealer and retaining some accounts in house, according to Vision founder and CEO Rob Harris.

Vision Security closes $35 million credit facility

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04/09/2013

OREM, Utah—Vision Security, a provider of home automation and monitoring services, recently secured a $35 million syndicated loan transaction with The PrivateBank and Trust, according to a Vision statement.

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