Ohio Sues Pinnacle Security

Another state has taken action against Utah-based Pinnacle Security Inc., accusing the company of violating consumer protection laws.

Ohio Attorney General Richard Cordrey, who filed the action, says the company installed  security systems in Ohioans' homes based on misrepresentations and then failed to honor rights to cancellation, among other violations of Ohio's Consumer Sales Practices Act (CSPA).

The suit is similar to litigation filed in by Illinois and New York. In the New York case, Pinnacle agreed to pay a $150,000 penalty and reform is sales practices.

"Through door-to-door sales, this company encouraged consumers to sign contracts and then installed home security systems on the spot," said Cordray. "My office received more than 50 complaints, many from consumers who bought the systems based on misrepresentations of the product or its prices. Pinnacle often refused to allow consumers to cancel and continued to bill them for the systems that they did not want. Through today's lawsuit we are asking the court to issue a permanent injunction to end these sales practices and to order Pinnacle to pay restitution to Ohio consumers."

According to a consumer from Cleveland, Pinnacle installed a system that did not work and then charged a fee for early termination of a contract. The termination fees in most cases amount to more than 100 percent of the contract price.

Another consumer, from Cincinnati, filed a complaint after Pinnacle allegedly sold a security system to her elderly mother who is impaired and then refused to allow the woman to cancel without paying additional fees.