Penalty Amount
$5,000,000
Connecticut Attorney General filed a $5 million stipulation judgment against Safe Home Security for repeated non-compliance with court-ordered consumer protection measures, including blocking contract terminations and misrepresenting terms. The judgment requires immediate payment of $1 million and suspends $4 million pending compliance, with an independent monitor for five years.
Safe Home Security must pay $1 million within ten months, with $4 million suspended based on compliance. The judgment imposes injunctive relief, requires hiring an independent monitor for five years, establishes a dedicated email for complaints, and mandates good faith efforts to resolve unresolved complaints with the Attorney General's office.
In-house legal teams should review all customer-facing agreements, particularly vendor contracts for security system installation/maintenance and direct-to-consumer service agreements. Focus on termination clauses that may unlawfully block cancellations or impose excessive fees, auto-renewal provisions lacking clear consent, warranties guaranteeing equipment functionality, and service level agreements defining response times. Representations about system reliability or installation quality in marketing materials must align with contractual guarantees. Amendments should ensure transparent cancellation processes, remove barriers to termination, and align all customer communications with contractual obligations to prevent deceptive practices.
Entity
Safe Home Security Inc.
Also known as: Safe Home Security
Industry
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$400.0M
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Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.
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