ADT Settles with FTC over Misleading Endorsements

By on March 18, 2014

The Federal Trade Commission (FTC) charged ADT LLC, maker of home security and monitoring systems, with misrepresenting that independent experts endorsed their products when ADT actually paid those experts.  Specifically, ADT paid more than $300,000 to child safety, home security and technology experts who promoted the ADT Pulse on more than 40 television and radio programs. 

 “It’s hard for consumers to make good buying decisions when they think they’re getting independent expert advice as part of an impartial news segment and have no way of knowing they are actually watching a sales pitch,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection.  “When a paid endorser appears in a news or talk show segment with the host of that program, the relationship with the advertiser must be clearly disclosed.” 

The FTC issued a proposed order in connection with its settlement with ADT which, among other things, requires ADT to remove endorsements that involve paid experts that were misrepresented as impartial and to disclose any material connections between ADT and parties who endorse the company. 

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