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Dave Miller – Tech Enthusiast & Security Expert – September 8th, 2022
The ability to automatically operate internet-enabled appliances and gadgets remotely is known as home automation, or domotics, and Vivint is one of several companies that offer these services; however, many customers frequently wonder: Is Vivint a scam?
Various factors raise this topic, but you might not be aware that Vivint is already well-known in the industry, with more than 1.9 million clients in the United States and Canada. And all of its devices function as a single, well-integrated home automation system that many consumers favor. So you can’t call Vivint a scam, but a few instances have hurt the company’s reputation and cost millions in fines over the years.
Continue reading the post to learn more about why consumers are asking about this issue and the reality of Vivint.
When discussing automation, we often refer to numerous electrical and automated control elements. Consequently, a variety of functions become available in your house when they get combined via the internet. It makes your life more comfortable and secure, and you may even spend less on home expenses. All these features combine to make a home automation setup.
The user interface or a central smart home hub typically gets where the setup is linked. Additionally, because every linked gadget has sensors and internet connectivity, you may control it from a distance, even using a tablet or smartphone.
Due to the rise in building development and the increased urbanization in European nations, the demand for home automation is growing along with the adoption of internet of things technologies. If you haven’t heard of this before, it’s nothing new. It is due to the income from the smart home industry. It gets anticipated to reach US$115.70 billion in 2022 and US$210.15 billion by 2030, with a CAGR of 10.7%.
While Vivint is a well-known brand in this sector, with a market valuation of $1.38 billion, the “Is Vivint a scam?” issue can only get addressed if I go back in time and discuss Vivint’s corporate past.
In 1999, Keith Nellesen and Todd Pedersen founded Vivint, which is now a publicly listed smart home company that operates in the US and Canada. But The Blackstone Group, one of the world’s top investing and advising organizations, bought Vivint in 2012. It took no time for Vivint Inc. to establish itself as a leading supplier of home technology services.
The firm was already among the biggest providers of home automation services and the second-largest in North America when Blackstone purchased it for $2 billion. The fastest growing solar firm in the US was Vivint Solar, which made up its other division. However, the business had already deployed more than 20 million devices in its launching year in households in 1999. While the Blackstone acquisition came much later, as discussed above.
Currently, Vivint concentrates on assisting families in leading intelligent lives in safer, smarter homes with smart solutions designed specifically for each user’s house. Vivint provides a full range of smart home solutions with flexible pricing and service options and a fully automated setup.
Note: In terms of Vivint’s workplace culture, Forbes included the company on its list of America’s Best Employers for Diversification in 2020 for the second year.
Currently, there are four categories in which Vivint offers its services:
The Smart Home systems are what I would concentrate on in this case. Still, you now have a general overview of the company’s history to get the answer is Vivint a scam?
Since everyone wants to simplify house management while enhancing living quarters’ comfort, security, and effectiveness. Vivint’s smart home solutions provide just this. To go beyond remote controls and programmed settings, Vivint developed an artificial intelligence for the smart home in 2017. This technology enables you to construct a centralized, self-regulating ecosystem for home monitoring, control, and energy saving.
In short, Vivint offers everything for everyone, including sensors, smart locks, lighting, inside and outdoor security cameras, and security personnel watching your doorbell 24/7. However, as every property requires a customized solution, the price is not listed on the internet, so you will need to get in touch with them for an estimate.
Note: One example of bespoke controls from Vivint is the Vivint Smart Thermostat, a smart thermostat that may save you money on energy costs while keeping you comfortable all year long. It will accomplish this by automatically adjusting your thermostat after learning your preferred temperature settings.
Several well-known smart home integrations, such as Amazon Alexa and Google Assistant, are compatible with Vivint. You will have a special code to use to operate the Vivint system, providing you complete access to disarm it physically.
Vivint has many complaints from users, some of which get discussed below.
You must choose a bundle whenever you contact Vivint to continue using their service. You will have the choice of signing a contract with Vivint. However, I must warn you that Vivint contracts are quite drawn-out and difficult to terminate, and most customers dislike long-term commitments.
You may avoid signing contracts if you buy your equipment in advance. However, if you choose to finance your system, Vivint will bind you to a 3-5 year contract. Many people get locked into costly contracts and afterward wonder why breaking out of them is so tough.
If you are considering canceling, you must submit a notification with any necessary supporting documents. Alternatively, you can contact support by calling 1-800-216-5232, but remember that getting does not necessarily result in your release from your Vivint contract. Therefore, before signing any contract, make sure to consider all of your wants and needs carefully.
Numerous clients criticize Vivint’s sales representation. To market home automation systems, they frequently go door to door. They inquire as to whether you have such a security system and may also teasingly ask how many people reside in the home and your line of work. They also want to show you videos straight once inside.
Even though the firm is legitimate. Giving all this information to a man who suddenly appeared in front of the door looks suspicious and risky. Users unaware of the firm and complaining about such marketing strategies frequently view them as scams.
You may look up a certified Vivint representative as a solution to this problem. Authorized representatives often possess the following:
An authorized uniform
Id badge
Official id number
Furthermore, the official website allows you to check the badge number.
Although if you subscribe to Vivint’s Premium Service, the company will service your equipment. According to this proposal, the corporation would provide free repairs and replacements for specific security system components. However, if you have issues with particular plans, your parts could get replaced with reconditioned ones, but the service might be pretty expensive.
Typically, when we finish the installation, all users have a warranty period that lasts just 120 days. After then, all fees for repair services are due and paid when the service call finishes; however, an agreement-based free replacement for any defective parts may be available.
The answer to is Vivint a scam, is still no, despite all the issues clients may have with the company. Millions of consumers are presently using the services this legitimate firm provides, which is only increasing.
Vivint has a lengthy history of being sued frequently. As I will detail below, they have been the object of several complaints over their misleading marketing and direct sales techniques. Here are a few of their well-known court cases from the past that I could find.
The American business DT Corporation offers electronic security, fire protection, and other alarm monitoring services across the country. The hardware bundles and services with expert installation and monitoring offered by both ADT and Vivint are comparable in many ways. So, regarding patent infringement claims, these two corporations have both filed lawsuits and sued themselves.
ADT claims that Vivint’s SkyControl Panel and Smart Hub violate patents; however, Vivint also sues ADT for home security-related patent infringement. The case intensifies a conflict that has been raging between the two businesses for more than a year.
It is not the only instance, though. They are also defending themselves against a patent infringement claim made by EcoFactor, Eyetalk 365 LLC.
Note: Vivint and ADT reached a $10 million settlement in 2018 after ADT accused Vivint representatives of signing contracts for Vivint on behalf of ADT customers in violation of the law. ADT claims its consumers have filed close to 1,000 complaints over the practice.
Vivint Smart Homes Inc. agreed to pay $20 million to resolve complaints brought by the Federal Trade Commission that the business utilized credit reports improperly to assist ineligible clients in obtaining financing for its goods and services. It took place when Vivint got accused of breaking the Fair Credit Reporting Act.
All of this was made possible by Vivint’s proprietary Street Genie technology, which oversaw the onboarding of new clients. Their sales representative used what is known as the “white paging” tactic to qualify potential customers by utilizing stolen personal information from some people to authorize loans for others.
The defendant Vivint got sentenced to pay a $15 million civil penalty, the biggest ever in a Fair Credit Reporting Act case, and an extra $5 million to make up for harm to customers as part of the settlement.
You can subscribe to email updates here and sign up for compensation from this settlement if you were incorrectly placed on your credit reports but did not sign up for Vivint’s services.
Vivint and the state of Arizona settled in March 2022, with Vivint agreeing to pay $325,000 in fines and $75,000 in restitution. It occurred following what the local attorney general called misleading promises to get clients to sign contracts. Additionally, Vivint also got accused of having its sales representatives renew customer contracts over the phone without the customer’s consent or knowledge.
Any Arizona Vivint client who believes they are entitled to compensation was given the time until June 30, 2022, to register a complaint. If you didn’t sign up for it, the time has already gone.
Due to recent news stories about many data breaches, customers are concerned about data privacy. Even Vivint’s poll showed that their consumers are concerned about the data businesses hold on them.
Vivint does not track the video footage taken by customers. Vivint secures user data from the device to the cloud and back using advanced encryption techniques and two-factor authentication. Customers alone have the authority to control who has access to their Vivint system and video streams. Furthermore, the firm has clarified that they do not share any information with third parties, sell any information, or use it to target advertisements or create consumer profiles.
A level of encryption is present in all high-quality home security systems, but like with any system, keep the hardware and software up to date. It’s the greatest strategy to handle escalating cyber threats.
Despite how poorly people perceive their actions and how badly their marketing strategies operate, Vivint is a legitimate company. They quickly established their reputation and still controlled a large portion of the market. Aside from the above-discussed issues that are in dispute. Their services and products provide the comfort you like you would anticipate from a firm that specializes in home automation. So, hopefully, I was able to address your inquiries concerning Vivint’s authenticity. And for any questions, you might have about using their products.
My response is that you get set to go if you can pay for their services up ahead or if you can adhere to their contracts. Users haven’t complained about their products; thus, everything that happened badly revolved around their marketing and other commercial policies.
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Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.
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