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ADT dealer dispute making dealers unhappy / comment on growing business July 29, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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ADT dealer dispute making dealers unhappy / comment on growing business
July 29,  2017
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ADT dealer dispute making dealers unhappy
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Ken,
    I am hoping to obtain your opinion/thoughts on dealer dispute matters/guidelines from ADT-Corp to ADT-Authorized Dealers as ourselves.
    ADT-Corp, has come up with new guidelines for all ADT-dealers when signing up a new consumers. They have notified us "dealer" that if a consumer has already started the sales process with them or another ADT-dealer- we are to walk away and not "interfere" with that consumer,of which is reasonable and understood to some degree.
    Here is the question that most dealers are having though, if the consumer tells our sales representatives they already cancelled their sales order with ADT-Corp or another Dealer, how can ADT-Corp fine the new dealer due to so their so called"interference" and apply a fine of $1000.00 if consumer did not make contact with another dealer till a week or two later.
    Here is an 1st hand example of why "dealers" are asking how is this even fair.  A consumer shopping around called our sale line number on 7/17/17- they ended up calling us back on 7/18/17 and wanted to move forward with our quoted offer on that same day. At this time we started to process the order and set up an account - in doing so we received an exception code that informed us this was going to be a Dealer Dispute. We then proceeded to call our ADT-Corp office to review the exception we had received- they confirmed that we would need to start our dealer dispute process for this account of which we did.
    This was the outcome below:
      "Good morning team, First ink resolution ADT corp. had first valid sale and payment 7.1.17 The installed cancelled 7/12/17. SPG has signed ppw 7/18/17 and will be awarded the dispute with a 1000.00 penalty for interference per notes on the acct in Mastermind that customer called 7/18/17 to ADT corp. wanting refund"

    Based on the out come, we ended up doing our own due diligence with the consumer and started asking a few more questions about their ADT-Sales set up. The consumer confirmed that they called ADT- 1st but then decided to not move forward with their sales/install appointment and cancelled it on 7/12/17. Since that time they continued shopping around hence as to why they contacted our dealership on 7/17/17. 
    In this type of situation we really don't feel like we "interfered"with this sale since the consumer did cancel out their install order even before contacting our dealership on 7/17/17,nor did we process any personal information such as payment/credit /alarm agreement till 7/18/17 when customer called back. 
    We really want to fight ADT-Corps results of which they concluded with but not sure if we have any grounds to do so. 
    I have also attached their ADT-Guidelines.  
    I would appreciate any thoughts to this matter. 
YB
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Response
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You have no grounds.  As an ADT dealer you agreed to ADT's dealer program rules.  The rules include its "arbitration" process called ADT First Inc.  The guidelines you sent me, which I quickly read, do not have any "appeal" process [which is not uncommon in an arbitration dispute resolution process].  
I don't know how prepared you were for the dispute resolution process but next time you may want to have counsel assist.  I take no position on whether you are right or wrong based on the facts you present.  Why?  Because it doesn't matter anymore.  ADT First Ink has spoken!
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comment on growing business from July 19, 2017 article
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Ken
To Gary: Looking to sell my alarm business in a few years. What makes for a good sell?? If there is items that I should be attended to at least it gives me some time to straighten them out.
Any help would be appreciated.
Thanks
Paul 
New Jersey Alarm Co.
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Response
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Paul, here is all you need to know for now.  Get updated Standard Form Agreements, get all your old subscribers to sign one and use them for new subscribers.  That will increase the value of your accounts from 10 to 20 times your RMR depending on whether you have any contracts now and how crappy they are.  If you need any more advice I suggest you consult with a psychic.  
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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
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