FTC says ADT settles deceptive reviews charges

AP News
Posted: Mar 06, 2014 1:15 PM

NEW YORK (AP) — The Federal Trade Commission says ADT Corp. has settled charges that it deceived consumers by paying people to recommend its home security products in media outlets without disclosing their connection to the company.

The commission says ADT paid child-safety, home-security and technology experts more than $300,000 to promote its ADT Pulse security system online and on TV.

It says ADT set up the media interviews through its public relations firms and booking agents. The paid endorsers were introduced by show hosts and reporters as experts and their connection to ADT was never revealed.

The FTC says the settlement is part of its crackdown on misleading endorsements in advertising.

A representative for ADT, which is based in Boca Raton, Fla., says the company is happy to have resolved the matter amicably.