CHARLOTTE, N.C. (FOX 46 CHARLOTTE) – A battle between two security companies will begin in court Monday in Charlotte. CPI Security sued Utah-based Vivint Smart Home back in Sept. 2020, claiming they used deceptive sales tactics to steal customers away. The trial is set to start Monday.
In a new statement sent to FOX 46, CPI said: “CPI is fully committed to protecting our customers, communities, and our business from deceptive sales practices. CPI’s complaint against Vivint speaks for itself, and we feel confident in our ability to prove the claims during the upcoming trial.”
In their complaint, CPI says Vivint employees knock on CPI customers’ doors and mislead them into believing that the two companies have a business relationship. They claim Vivint agents coerce CPI customers into signing new contracts with Vivint after making them believe that Vivint is simply assuming their account, or that they are receiving new CPI equipment.
“CPI has to show that the defendants made statements of fact that influenced customers and caused them to make purchases of the competitor’s product,” said UNC School of Law professor Deborah Gerhardt.
In their complaint, CPI says they’ve lost millions of dollars in business due to Vivant taking their customers. They are seeking $50 million in compensatory and punitive damages.
In a response to CPI’s complaint, Vivint denied all claims of deceptive sales tactics and says these were the actions of a few rogue employees. They also filed a counterclaim against CPI, saying they have defamed Vivint by sending notices to customers about Vivint’s “scams.”
CPI says Vivint eventually withdrew their counterclaim.