KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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comment on new contract / class action anyone?
October 30, 2018
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comment on new contract from article on October 20, 2018
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Ken
    All well and good, except for the fact that “contract “ has become a dirty word in the residential market. I was surprised to learn, courtesy of Ring and SimpliSafe, that as opposed to being a reputable provider of professionally installed security systems,        I’ve actually been a scam artist all these years! 
name withheld
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Response
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    The alarm industry [and I include most low voltage applications and systems] has matured, been around a long enough time to be somewhat familiar with both residential and commercial accounts.  Alarm contracts, with their protective provisions, RMR model requiring long term [3 to 5 years or more] are receiving more scrutiny and challenges. Without the protection afforded by the contracts the alarm industry will be exposed to liability that will force insurers who insure the industry to increase premiums, and it will force alarm companies to increase prices. This reality is one of the factors that convinced courts to accept the alarm contracts and the protective provisions in those contracts.
    If large institutional subscribers, major landlords and property managers, and run of the mill pain in the butt subscriber challenges wasn't enough of a problem, now comes along alarm company competitors with deep pockets advertising "no contracts" and making it sound like alarm companies who do require contracts, who they identify as just about all the other companies except them, are taking advantage or, as noted above, are scam artists.
    Just the other day I saw one of the companies advertise on TV, "no long term commitment" and "no contract". It struck me as so odd, I asked one of my attorneys to look into a class action based on deceptive advertising. 
    Why deceptive? Well, not one of these alarm companies offering "no contracts" actually mean that. They all use contracts.     You can't get their services without agreeing to a contract. It may permit you to cancel whenever you want, but you are still agreeing to Terms and Conditions, and that's a contract.  Subscribers agreeing to these Terms and Conditions are actually agreeing to all of the "objectionable" provisions in the typical alarm contract, such as a limitation of liability. And, there is no room for negotiating terms, assuming you could find someone to negotiate with. 
    You're thinking the subscribers are the potential class. Maybe, especially those that suffered any losses and found out they can't recover from the alarm company. But that's of less interest to you than a potential other class, and that would be you. As a competitor in the alarm industry you are hurt, economical, by the "deceptive" advertising, because you are losing business. Why should they sign your contract when they can get security services with no commitment and no contract?
    This is a thought in process; comments are welcome [and maybe a class representative to be our plaintiff]. 
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com