Alarm company ordered to pay restitution to more than 600 Arizonans
PHOENIX – More than 600 Arizonans will benefit from a settlement with a Pennsylvania-based alarm monitoring company following deceptive practices, Arizona Attorney General Mark Brnovich announced Tuesday.
The settlement resolves claims that Guardian Protection Services concealed material facts from customers, such as an “early termination fee” that required customers to pay for months of years of service.
“Excessive and unfair fees cannot be concealed or buried in a contract’s fine print,” Brnovich said in a press release.
“We expect companies to be transparent with consumers and inform them of what they’re signing up for when they sign a boilerplate contract.”
Brnovich’s office alleges Arizona customers entered into contracts with unfair provisions when it came to advertising, selling, installing, monitoring and servicing electronic security systems.
As part of the settlement, Guardian must pay $227,558 in restitution to consumers who paid more than $500 for an early termination fee. Customers will receive restitution in the amount they paid over $500 for the termination.
The Attorney General said customers will be contacted if they are eligible for a payout.
Guardian is also required to pay an additional $200,000 in civil penalties and requires the company to clearly disclose any early termination fees in the future.