December 29, 2010

****************

***********

Question

************

Hey Ken

    I have a question. We recently got into the new technology of text messaging

only for a security system meaning the system will send a text or email to the

client when an alarm or other event happens on their system. We started

selling this option to clients who are not interested in central station

monitoring which we see more often than ever.  Just another way of getting the

recurring revenue. Is there any legal liability with this service if they are

"self monitoring" and would we have the client sign the standard monitoring

contract or is there another that needs to be signed

Regards

Mike

************

Answer:

***********

    The Subscriber could sign a monitoring contract but because there is no

monitoring by a central station the contract would have to be modified.

    The Sales contract would specify that you are installing a local alarm

system.  You would include terms that you are having that alarm system

communicate to the subscriber's cell phone.  You would want to mention that

if a computer is involved and Internet access at the subscriber's residence,

that you are not providing that equipment or service.

    I would also use the Disclaimer Notice.  You would add to the printed

itemized list of security that the subscriber is not getting the fact that the

subscriber declined to have central office monitoring.

    The Remote Video Monitoring contract is for CCTV viewing on the smartphone with no central station viewing. 

    With the relatively new technology which is becoming more affordable subscribers will be able to arm or disarm their systems remotely through their smartphones, as well as tell that the system is in countdown before activating, or check their CCTV cameras for activity in the premises.  That may encourage subscribers to decline central station monitoring.  Be sure to note that on the Disclaimer Notice and the Sales contract or other contract you are having the subscriber sign.