Arkansas Attorney General Leslie Rutledge on Friday filed a consumer protection lawsuit against Utah-based NorthStar Alarm Services for alleged violations of the state’s deceptive trade practices and home solicitation sales laws.
Rutledge accuses NorthStar of subjecting consumers to illegal high pressure sales tactics, often misrepresenting its affiliation with other alarm companies and failing to disclose the length and full cost of the proposed service agreement and contract. Once consumers are locked into a contract, the company allegedly fails to service or repair malfunctioning equipment, makes it difficult to cancel the contracts and automatically renews the service contract for another five-year period, which is a violation of state law.
As part of an effort to trick consumers into signing a new contract, the complaint says NorthStar’s sales representatives repeatedly visited residents’ homes and told them they were there to "replace" their alarm system because their existing security company was "going out of business," which was a bogus claim. In other cases, NorthStar reps allegedly told consumers that they were "upgrading" their existing alarm system to get them to enter into an agreement with the company.
"Many companies market their products and services through door-to-door sales," said Rutledge. "However, Arkansans are guaranteed a number of protections to ensure they are treated fairly and properly. NorthStar willfully chose to ignore the law and violate the trust of countless Arkansans."
The lawsuit seeks civil penalties, restitution for the affected consumers, attorneys’ fees, costs and other relief against NorthStar.
Matthew Thomas, compliance manager for NorthStar, told SecurityInfoWatch.com in an email that based on what they currently know about the complaint that they believe the allegations are "without basis."
"Because NorthStar has not yet been served with the complaint—and indeed just learned of the Arkansas Attorney General’s complaint this morning—we have not yet had an opportunity to analyze the allegations and therefore cannot provide any specific response," said Thomas. "NorthStar is committed to ensuring that its customers receive the highest quality products and services and that their customer experience is first rate. And based on the fact that we have some of the highest customer satisfaction rates in the industry, NorthStar believes it is meeting this goal. We look forward to working with the Attorney General’s office to try to address any legitimate concerns that it may have."
