Security firm to pay $20M to settle FTC charges
A home security and surveillance company has agreed to pay $ 20 million to pay the Federal Trade Commission fees it misused credit reports to help unqualified customers fund the company's products and services the agency announced on Thursday. The FTC said Vivint Smart Homes Inc., based in Provo, Utah, agreed to pay a civil penalty of $ 15 million and an additional $ 5 million to compensate injured customers. The company said in a statement it had changed its practices. The FTC accused Vivint of violating the Fair Credit Reporting Act by not properly receiving credit reports to qualify potential customers to fund their smart home surveillance and security products. It also violated the FTC's "red flags" rule by not implementing an identity theft prevention program required by certain companies that regularly use or receive credit reports. The FTC announced that some of Vivint's sales reps, who work door-to-door on a commission-only basis, used a process ...