(COLUMBUS, Ohio)—In a settlement announced today by Ohio Attorney General Mike DeWine, Utah-based Pinnacle Security has agreed to pay more than $75,000 in restitution to 169 Ohio consumers and additional restitution to consumers who file eligible complaints with the Ohio Attorney General’s Office within the next 60 days.
The settlement resolves a 2010 lawsuit that charged Pinnacle Security with violating Ohio’s Consumer Sales Practices Act and Home Solicitation Sales Act.
“This settlement provides substantial restitution for Ohio consumers and upholds important consumer rights,” Attorney General DeWine said. “It will ensure that Pinnacle Security provides consumers proper notice of their three-day right to cancel door-to-door sales and that the company honors cancellations made by consumers within their three-day cancellation period.”
Pinnacle Security is a home security services provider that solicits Ohio consumers through door-to-door sales. The 2010 lawsuit, filed by the Attorney General in the Franklin County Common Pleas Court, charged Pinnacle Security with installing security systems in Ohioans’ homes based on misrepresentations and failing to honor consumers’ cancellation requests, among other violations.
In the settlement, Pinnacle Security agrees to change certain business practices and train salespeople and staff to:
- Give consumers proper notice of their three-day right to cancel
- Wait to perform any installation or work until after consumers’ three-day cancellation period
- Provide adequate training to consumers on the use of their security systems after installation
- Make accurate statements about fees, discounts, and signing up with Pinnacle Security
- Instruct consumers to check with their existing home security services provider if they want to switch to Pinnacle Security
Under the settlement, Pinnacle Security has been assessed a $50,000 civil penalty, of which $25,000 will be suspended upon full compliance with the settlement.
Pinnacle Security also will pay a total of $75,867.29 in restitution to 169 consumers identified in the settlement and will give the consumers the option to cancel their contracts. These consumers filed complaints with the Ohio Attorney General’s Office, the Better Business Bureau, or directly to Pinnacle Security.
Additionally, Pinnacle Security will pay restitution to consumers who file eligible complaints within 60 days of the settlement date.
Ohio consumers who have a complaint against Pinnacle Security based on a transaction that occurred on or after December 17, 2008 should file a formal complaint through the Ohio Attorney General’s website at www.OhioAttorneyGeneral.gov or by calling 800-282-0515 not later than February 10, 2012.
Lisa Hackley: 614-466-3840
Mark Moretti: 614-466-3840
Consent Entry and Order (PDF)