NEW YORK — ADT Corp. has settled claims it deceived consumers by paying people to recommend its home security products on media outlets without disclosing their connection to the company.
The Federal Trade Commission said ADT paid child safety, home security, and technology experts more than $300,000 to promote its ADT Pulse security system online and on TV. One expert got more than $200,000, and two received a free security system and monthly monitoring service, which the FTC said is worth about $4,000.
The paid endorsers were introduced by show hosts and reporters as experts, and their connection to ADT was never revealed. The endorsers also talked about other products, making the segment look as if it was an unbiased review.
ADT agreed to remove the endorsements and disclose future endorsers’ identities clearly. The FTC said the case is part of its crackdown on misleading endorsements.