As previously reported, Mark Pugsley’s clients blew the whistle on Vivint Smart Home (Vivint) leading to a $3.2 million settlement with the Department of Justice. Now the FTC has announced that Vivint agreed to a separate $20 million settlement to resolve allegations that its door-to-door sales representatives firm misused credit information to help customers obtain financing for the company’s alarm systems.
In its complaint filed last week in federal court in Utah the FTC alleged that Vivint violated the Fair Credit Reporting Act (FCRA) by improperly obtaining credit reports in order to qualify potential customers for financing for its smart home monitoring and security products. The FTC also alleged that Vivint violated the FTC’s Red Flags Rule by failing to implement an identity theft prevention program, which is required of certain companies that regularly use or obtain credit reports.
In a statement Mark Pugsley said: “My clients did not qualify for a whistleblower award in the FTC case because the FTC does not have a whistleblower program. But they nevertheless spent hundreds of hours working with government investigators because they knew that what Vivint was doing was wrong and wanted to stop the illegal conduct. They reported it because it was the right thing to do.”