Vivint’s 2021 Lawsuits: A Breach of Trust


Vivint Smart Home, a prominent player in the home security market, faced a tidal wave of legal challenges in 2021. These lawsuits raised serious concerns about the company’s conduct, leaving many customers questioning their trust in the brand. Let’s delve into the details of these lawsuits and their potential impact.

Deceptive Sales Practices:

In 2021, Vivint faced lawsuits from both CPI Security and the Department of Justice (DOJ) accusing them of deceptive sales practices. The allegations included:

  • Misleading customers about CPI’s acquisition: Vivint allegedly misinformed customers that Vivint had acquired CPI, leading them to switch providers without realizing the change.
  • False claims about competitors: Vivint was accused of making false claims about other security companies to lure customers away.
  • High-pressure sales tactics: Sales representatives were reportedly using aggressive tactics to pressure customers into signing long-term contracts they might not have fully understood.

These lawsuits resulted in hefty settlements, including a $10 million settlement with CPI and a $3.2 million fine from the DOJ.

Misuse of Credit Reports:

In another major blow, Vivint was hit with a lawsuit by the Federal Trade Commission (FTC) in 2021 for misusing consumer credit reports. The FTC alleged that Vivint:

  • Obtained credit reports without permission: Vivint representatives reportedly accessed other people’s credit reports without their knowledge or consent to qualify potential customers for financing.
  • Failed to implement proper safeguards: Vivint lacked adequate procedures to prevent identity theft and protect consumer information.

This resulted in a $20 million settlement, including a $4.7 million fund for affected consumers.

What does this mean for Vivint customers?

These lawsuits highlight potential issues with Vivint’s sales practices and data security measures. While the company has taken steps to address these concerns, it’s crucial for customers to be vigilant and aware of potential risks. Here are some takeaways:

  • Read contracts carefully: Before signing any agreement with Vivint, ensure you understand all the terms and conditions, including the contract length, early termination fees, and equipment costs.
  • Be wary of high-pressure sales tactics: Don’t feel pressured into making a decision on the spot. Take your time to research and compare options before choosing a home security provider.
  • Protect your credit information: Be cautious about sharing your personal and financial information with Vivint representatives.
  • Monitor your credit report: Regularly check your credit report for any unauthorized activity and report any discrepancies immediately.

Vivint’s 2021 lawsuits serve as a stark reminder of the importance of transparency and ethical business practices. While the company has attempted to rectify its mistakes, it’s up to each customer to decide whether they trust Vivint to protect their home and personal information.


What specific deceptive sales practices did Vivint use?

Vivint allegedly misled customers about CPI’s acquisition, made false claims about competitors, and used high-pressure sales tactics to pressure customers into signing contracts.

How did Vivint misuse consumer credit reports?

Vivint obtained credit reports without permission and failed to implement proper safeguards to protect consumer information.

How can I protect myself from Vivint’s deceptive sales practices?

Read contracts carefully, be wary of high-pressure sales tactics, and protect your credit information.

How can I get compensation if I was affected by Vivint’s misuse of credit reports?

You can submit a claim form to the FTC for the $4.7 million fund.

What changes has Vivint made in response to these lawsuits?

Vivint has implemented new policies and procedures to address the issues raised in the lawsuits.

Should I still consider Vivint as a home security provider?

The decision ultimately depends on your individual risk tolerance and level of trust in the company.


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