Burglar alarm sales company gives undertakings to the OFT
The OFT, in partnership with Leicestershire County Council Trading Standards, have secured undertakings from a burglar alarm company and its directors that they will not mislead consumers during sales calls.
Leicestershire County Council Trading Standards received complaints after Direct Response Security Systems Limited cold-called consumers offering free alarm systems on a limited or one-off basis. Customers complained of potentially misleading information including a failure by the firm to alert customers to ongoing alarm monitoring fees of up to £3000 over five years, until a follow-up visit to their homes.
Direct Response Security Systems and its directors, David Price, Ranjit Singh Dhillon and Lee Hosking, have given undertakings that they will not, in the course of business, breach the Consumer Protection from Unfair Trading Regulations 2008 and the Misrepresentation Act 1967. These require that in the future they will not: describe products as free of charge, or in similar terms, during pre-contractual negotiations with consumers, without disclosing any ongoing fees, falsely state that there are only a limited number of free alarm systems available or that the product or offer is a one off, give the impression that the system generates a guaranteed direct or rapid response from the police or other emergency services, deceive consumers in relation to the prices normally charged by the company for the product, and installation costs.
Dave Bull, Head of Leicestershire County Council Trading Standards said:
“We are pleased to have worked closely with the Office of Fair Trading to obtain undertakings, particularly as this case involved consumers receiving potentially false information. It is important that businesses provide upfront and accurate information when selling products and services.”
