Company fined for duping NY homeowners

TRD New York /
Aug.August 12, 2010 03:00 PM

AG Andrew Cuomo

Attorney General Andrew Cuomo announced a settlement today with Pinnacle Security Group, a Utah-based company that used deceptive door-to-door sales tactics to trick close to 4,000 New York homeowners into signing contracts for unnecessary services. The attorney general’s investigation revealed that Pinnacle’s door-to-door sales staff often targeted homeowners who had existing contracts with other security companies. In a deceptive practice known as “slamming,” Pinnacle made false representations to convince people to sign up for their products even though the consumer had a contract with another home security company. Pinnacle misled homeowners into believing that their existing home
security provider had gone out of business, had merged with Pinnacle or was in some way already affiliated with Pinnacle. Homeowners were then stuck paying for redundant monthly services from two security companies, including upwards of $50 per month for Pinnacle. Those who tried to void the contract were faced with cancellation fees. The settlement requires Pinnacle to provide full compensation to all New York consumers who signed up with the company since January 2008 and were subject to deceptive sales practices. The company must also pay a $150,000 penalty and reform its sales practices. TRD

 
 

Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

Owners of some residential properties can’t hide behind
LLCs anymore
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)

Landlords take another hit: Cuomo signs expanded Loft Law

Landlords take another hit: Cuomo signs expanded Loft Law
Governor Andrew Cuomo (Credit: Getty Images)

Cuomo wants to exempt NYC from prevailing wage bill

Cuomo wants to exempt NYC from prevailing wage bill
Gov. Andrew Cuomo (Getty, iStock)

Commercial eviction and foreclosure ban extended until January

Commercial eviction and foreclosure ban extended until January
Gov. Andrew Cuomo (Getty)

Judge blocks effort to quash Cuomo’s new Covid restrictions

Judge blocks effort to quash Cuomo’s new Covid restrictions
Gov. Andrew Cuomo with the Cathedral Basilica of St. James and Agudath Israel of Madison in Brooklyn (Getty, Wikimedia, Google Maps)

Religious groups sue to stop Cuomo’s new lockdowns

Religious groups sue to stop Cuomo’s new lockdowns
Gov. Andrew Cuomo (Getty, iStock)

Covid hotspots must lock down tomorrow: Cuomo

Covid hotspots must lock down tomorrow: Cuomo
Gov. Andrew Cuomo (Getty, iStock)

Cuomo to redraw city’s shutdown map

Cuomo to redraw city’s shutdown map
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...