Comment on NY to fine alarm companies for false alarms-is this a good idea July 17, 2025

KEN KIRSCHENBAUM, ESQ
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Comment on NY to fine alarm companies for false alarms-is this a good idea
July 17,  2025

Comment on NY to fine alarm companies for false alarms-is this a good idea from June 30, 2025
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Ken,
   I want to weigh in on our experience in Georgia for similar legislation.
   The alarm industry was successful in helping to pass Georgia law O.C.G.A. 36-60-28 that generally prohibits local governments from fining alarm companies for false alarms cause by the alarm user. According to this statute, alarm system companies are only responsible for their own dispatch error, failure to follow proper verification or improper installation of alarm system.
   There are 4 cities or counties in Georgia that currently require that the alarm company pay for any and all false alarms, on behalf of their customers. These were in place prior to the passing of the state ordinance.
   All of the 4 cities or counties use CryWolf to register alarm users, collect registration fees and assess false alarm penalties. CryWolf will send every alarm dispatch fine, on behalf of our customers registered with them, to us to pay. We then have to research the alarm and determine if actual alarm, false alarm and what caused the alarm. If determined to be fault of the customer, which is most every alarm, we then invoice the customer for the alarm fine we have paid on their behalf. There have been cases of an actual event, not a false alarm which we then contest fine with CryWolf.
   Customers will push back on paying the fine if they believe the fault is with our system installation or equipment, which we will work with to determine who is responsible for the fine. We have also lost customers who refuse to pay for the false alarm fines we have already paid on their behalf, even when we determine it is clearly a user error. The fines, assessed to us by CryWolf, must be paid, or we risk losing our license to operate in those areas.
   There may be companies in Georgia that have determined a better way to work through the system. Would like to hear from them on how they handle these company-directed alarm fines from CryWolf on behalf of the cities and counties that CryWolf represents.
Vince Raia, President
EMC Security

Response
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   Here is my take. There is a better way, and I believe it's been the way it has been since the beginning of false alarm; the end user is fined and pays the fine. While the municipality can certainly hold a license over the head of the alarm company, the municipality can fine and assess a property owner and lien the property, ensuring payment in the same way as real estate taxes or condo charges.
   The friction caused by the fine and trying to determine who is at fault and who should pay the fine is a source of real concern. Losing customers over a fine [or unpaid service charge for that matter] is something that alarm companies need to be sensitive about.
   My position, unsupported by statistical data, is that if there is no ambiguity who is responsible for the fine there will be less disputes about it. The Kirschenbaum Contracts TM make it crystal clear that the alarm company will not be responsible for or pay false alarm fines, period. Interestingly enough, when I negotiate the contract terms, which I do regularly, I give up several provisions, but not this one regarding fines. I do not want to invite the kind of dispute that the legislation seems to be encouraging, who is ultimately responsible for the fine. I see in Georgia they don't even want to wait to fine out, they charge the alarm company and leave it up to the alarm company to sort it out with the customer. I suggest that will be a losing proposition for the alarm company every time.
   Fine end users, not alarm companies.
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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
www.KirschenbaumEsq.com