Case: DOJ Investigation ADT Illegal Charges

This settlement agreement between the United States and ADT Security Services, effective upon the last signatory's signature in April 2026, resolved allegations that ADT violated the Servicemembers Civil Relief Act (SCRA) by improperly requiring servicemembers to provide 30-day notice when terminating home security contracts. Under the terms of the four-year agreement, ADT was prohibited from imposing this 30-day notice requirement on servicemembers and was required to refund amounts paid for periods after contract termination within 60 days. ADT agreed to establish a $1.26 million settlement fund within 30 days to compensate aggrieved servicemembers, with each individual receiving either a refund of unlawful charges plus $300 or triple damages, whichever amount was larger. The company was also required to pay a $79,380 civil penalty to the U.S. Treasury within 14 days and implement comprehensive SCRA policies and procedures within 45 days of the agreement's effective date. These new policies included provisions for penalty-free contract termination under specified military circumstances, streamlined refund procedures, designated customer service representatives, and formal complaint handling procedures⁻. ADT was further obligated to provide SCRA compliance training to covered employees and submit bi-annual reports on SCRA-related complaints to ensure ongoing compliance⁻⁻. The agreement included enforcement provisions allowing the United States to review ADT's compliance at any time, with exclusive jurisdiction residing in the U.S. District Court for the Southern District of Florida. Any settlement fund amounts not distributed to servicemembers within the four-year term would revert to the United States Treasury⁻.