ADT Security Systems Headquarters

Agency: Federal Trade Commission (FTC)Washington
Description:

The Federal Trade Commission ("FTC") filed a Complaint against ADT LLC, ("ADT"). Based on the investigation, the FTC charges that ADT violated provisions of the Federal Trade Commission Act. The FTC Complaint alleges ADT misrepresented that paid endorsements from safety and technology experts were independent reviews. The Complaint further alleges that ADT paid spokespeople to demonstrate and review the ADT Pulse on television and radio news programs, blogs and other online material. Therefore, misrepresenting that the reviews were independent, and failed to disclose that the experts were being paid by ADT to promote the system. According to the FTC Complaint, ADT set up media interviews for the endorsers through its public relations firms and booking agents-often providing reporters and news anchors with suggested interview questions, and background video. The paid ADT endorsers were introduced by program hosts as experts in child safety, home security, or technology usually with no mention of any connection to ADT.

Under an agreed-upon Settlement, ADT is prohibited from misrepresenting paid endorsements as independent reviews in the future. The proposed Order requires ADT to prominently disclose a material connection, if one exists, between an endorser and the company. ADT must provide each paid endorser with a clear statement of his or her responsibility to disclose, in any television appearance, blog posting, or other communication, the endorser's material connection to ADT, and obtain a signed and dated statement acknowledging receipt of that statement. ADT is further ordered to maintain a system to monitor and review the representations and disclosures of endorsers, immediately terminate and cease payment to any endorser upon request, and deliver a copy of this Order to all officers and directors, and to all current and future managers, employees, agents, and representatives.

For five (5) years after the last date of dissemination of any representation covered by this Order, ADT is to maintain and make available to the FTC any documents relating to complaints or inquiries concerning any endorsement made.

This Order will terminate twenty (20) years from the date of its issuance, or twenty (20) years from the most recent date that the United States or FTC files a Complaint alleging any violation of the Order.

On June 18, 2014, the Federal Trade Commission ("FTC") approved a Final Consent Order settling charges that ADT, LLC ("ADT") violated the Federal Trade Commission Act ("FTCA"). In March 2014, the FTC conducted an investigation into the activities of ADT and determined their endorsements deceived consumers by misrepresenting that paid endorsements from safety and technology experts who appeared as guests on news programs and talk shows were independent reviews. Therefore, failing to disclose a material connection between ADT and an endorser.

The Order prohibits ADT from misrepresenting paid endorsements as independent reviews. The Order requires ADT to clearly and prominently disclose any material connections in advertising for home security or monitoring products or services. ADT must 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. ADT, within 7 days of the date of service of this Order, must take all reasonable steps to remove any demonstration, review, or endorsement, by an endorser with a material connection to ADT. The Order requires ADT to prominently disclose a material connection between an endorser and the company. ADT must provide each paid endorser with a clear statement of his or her responsibility to disclose, in any television appearance, blog posting, or other communication, the endorser's material connection to ADT, and obtain a signed and dated statement acknowledging receipt of that statement. ADT is further ordered to maintain a system to monitor and review the representations and disclosures of endorsers, immediately terminate and cease payment to any endorser upon request, and deliver a copy of this Order to all officers and directors, and to all current and future managers, employees, agents and representatives.

For five years after the last date of dissemination of any representation covered by this Order, ADT is to maintain and make available to the FTC any documents relating to complaints or inquiries concerning any endorsement made and within 60 days after the date of service of this Order, shall file with the FTC a true and accurate report, in writing, setting forth in detail the manner and form in which it has complied with this Order.

This Order will terminate twenty years from the date of its issuance, or twenty years from the most recent date that the United States or FTC files a Complaint alleging any violation of the Order.