ADT Security has provided the Australian Competition and Consumer Commission with a court-enforceable undertaking including an undertaking to pay refunds to residential customers who did not receive an annual preventative maintenance service of their security systems.
The ACCC received several complaints that some ADT residential customers were paying a monthly fee, in excess of the standard fee, for an annual maintenance inspection of their security systems, but were not receiving any inspections.
Following an investigation the ACCC expressed its concerns to ADT that its conduct may have breached section 52 of the Trade Practices Act 1974, which prohibits misleading and deceptive conduct, and section 58 which prohibits corporations from accepting payment for services it does not intend to supply.
In response to these concerns, ADT is conducting a comprehensive audit of its customer base to identify those who had contracted to receive annual maintenance services but had not received them. All affected customers are being contacted by ADT with a letter of apology and appropriate refund.
In addition to providing refunds of $66 for each annual maintenance visit missed, ADT has also undertaken to:
- continue its existing trade practices compliance program for five years
- implement a complaints handling system compliant with Australian Standard 4269 – 1995 and
- take all reasonable steps to ensure that customers who are entitled to receive maintenance services will receive them in accordance with their contracts, it has adequate data management systems to facilitate this and that ADT Authorised Dealers are fully aware of, and do not misrepresent, the services offered by ADT.
"Home security is of paramount importance to consumers, who are entitled to peace of mind that their security system is operating and being maintained in accordance with their contract", ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC acknowledges ADT's cooperation and response to the ACCC's concerns, which has led to a good result for consumers affected by ADT's conduct".