The alarm industry has a self-professed attorney for our industry, Ken Kirschenbaum. One of the many services he provides our industry is a daily email regarding legal issues in our industry. His email on Saturday, July 4, 2020 contained an article regarding the nation’s largest alarm company and a new set of declarations they are making. I have copied it directly below. I have highlighted the pertinent paragraphs.
Can you compete against ADT’s guarantees
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Good Fourth of July article because ADT’s guarantees are a marketing plan designed, no doubt, to cause a big bang in the alarm industry. Other than the customary [and required] 3 day cooling off period during which a customer can cancel without penalty, the alarm industry is not known for its willingness to permit early contract termination, for any reason. Also, which the customary $250 Limitation of Liability [and that applies only if negligence can be established] alarm companies are not known for reimbursing their customers for losses.
ADT has two guarantees. First, money back if ADT can’t fix any problems within 6 months of installation. Second, up to $500 to reimburse the customer for a homeowner’s insurance deductible.
What guarantee do you offer that compares to these? Most likely, none. How then can you compete? What can you say when the customer asks you about these guarantees and wants to know why the customer shouldn’t select ADT as its alarm provider?
Well, you can probably start with “the guarantees are worthless and meaningless”. Why? Read them. Here’s the first.
“ADT 6-MONTH MONEY BACK GUARANTEE: Money Back guarantee only applies after ADT has made attempts to resolve a system related issue and has not been able to resolve that issue within the first six months of your contract. Equipment must be fully removed before a refund will be processes. Conditions prevent normal system operation cannot be caused by the customer.”
There are three conditions precedent to this guarantee. ADT has to have made attempts to repair the system within 6 months. The customer cannot have created conditions that caused the problem and the system must be fully removed. [not sure who has to remove it – that’s not mentioned in the guarantee].
Here’s what happens if you can’t get a system you installed working during the first 6 months, except for customer error or conditions caused by the customer [same as ADT]; you’re in breach of your contract and in breach of your warranties.
Here’s the second guarantee:
“ADT THEFT PROTECTION GUARANTEE: The Customer presenting ADT with this ORIGINAL CERTIFICATE will be eligible to receive a reimbursement of up to five hundred dollars ($500) of Customer’s homeowner’s insurance deductible (if any) if, and only if, ALL of the following requirements are met to ADT’s reasonable satisfaction: (i) the property loss was the result of a burglary that took place while the security system installed at Customer’s protected premises was in good working order and was “on,” and while all of Customer’s doors and windows were locked; and (ii) the intruder entered the residence through a door, window or other area equipped with an ADT detection device, and such detection device was not “bypassed”; and (iii) Customer is not in any way in default under the ADT Residential Systems Customer’s Order; and (iv) Customer files a written claim with their homeowner’s insurance company, and such claim is not rejected or otherwise contested by the insurer; and (v) Customer reports the burglary loss to the appropriate police department and obtains a written police report; and (vi) Customer provides ADT with copies of the insurance claim report, the police report within sixty (60) days of the property loss and proof of settlement by insurance carrier; and (vii) Customer certifies in writing to ADT (by signing this ORIGINAL CERTIFICATE and presenting it to ADT within sixty days of the property loss) that all of the foregoing requirements have been satisfied. Customer understands that presentation of this ORIGINAL CERTIFICATE signed by Customer is required and understands that ADT reserves the right to reject any application for reimbursement that does not comply with ALL of the requirements. Photocopies or other reproductions of this Certificate will NOT be accepted. By signing below, Customer certifies to ADT that all of the foregoing requirements have been satisfied. Please mail to: ADT Security Services, Account Management Support Center, Attn: Theft Protection Guarantee Claims, 14200 E. Exposition Avenue, Aurora, CO 80012.”
Here’s what I really think of this one; there should be a new “(viii) when hell freezes over”.
Who is going to navigate through the conditions precedent to collect their $500. I’d like to hear from ADT to find out how many customers who did suffer a loss actually received their reimbursement, say over the next year. The point is that it’s too little and only after a great deal of time and effort will be required to meet all the conditions for reimbursement. The guarantee also assumes that there is insurance and a deductible was applied.
So these two guarantees appear to me to be ice in the winter. But who am I to question ADT’s marketing strategy? If faced with questions from potential or existing customers comparing your services, feel at liberty to express my point of view. I don’t think these guarantees will be setting any new standards in the alarm industry.