Vivint to Launch Their Own Proprietary Security System

While the old-style of home security trapped users into long-term contracts, dishonest pricing, and rates that never stop going up, it's becoming more and more clear that since the 90s, the trend in home security is the proprietary system.

According to a press release, Vivint is the newest entrant into the proprietary system market, saying that they are going to begin with their newest system, "SkyControl." Here are the problems with the proprietary system model:

You can't leave the company you're with unless you replace the system. That usually includes the sensors.

Forget contracts! Since proprietary systems have come out, once you have the unit in your home, you can't do anything about it. Generally, those systems are built to be used with one company and one service.

Almost always, these systems are touted as being good for the customer. Alarm Force has made their own system, SimpliSafe is a newer entrant that has built their own system, Lifeshield makes their own system, and now you can pile Vivint's system onto the ever-growing pile of proprietary systems. While most of these companies still make you sign a contract, the fact that their system is proprietary means that even if you tried to exit your contract with them, you'd STILL not be able to simply sign up for another service.

Why?

Because their system is a simple, effective way to lock you into their service.

The systems are rarely as good as open systems

Think about the number of companies that have been building systems for the last 50 years, and even more hardware-only security system manufacturers have entered in the last 10 years: Honeywell, 2Gig, DSC, GE, Elk, and many many more. The systems these companies make are top of the line. We sell Honeywell generally because we think they are the best systems on the market. That said, the other brands are pretty darn good, too, and often cheaper.

A Security Company Can't Simply Release Their Own Panel and Expect Consumer Adoption.... So How Is Vivint Getting Their System Into Homes?

This goes to the history of Vivint. Vivint has become a huge company in the last 10 years. Formerly APX, they changed their name, which got the company away from a sullied reputation. Though, Vivint still has more than 2000 BBB complaints, a C rating from the Better Business Bureau, and the history of government actions taken against the company, to tell a more complete story about how the Vivint grew into the behemoth that it currently is:

In 2010, the "State of Arkansas Attorney General's Office filed a complaint in the circuit court of Pulaski County alleging that Vivint, Inc., formerly known as APX Alarm Security Solutions, Inc. violated the Arkansas Deceptive Trade Practices Act and the Arkansas Home Solicitation Sales Act.... Vivint agreed to pay $125,000 for the costs of the investigation and prosecution of the complaint."

In 2012, "the Wisconsin Attorney General's Office announced a Consent Judgment with Vivint, Inc. The consent judgment requires the company to pay refunds to consumers who were misled about their ability to cancel their alarm service contracts, as well as consumers who were misled about false alarm charges."

In 2013 the "Kansas Attorney General entered into a Settlement Agreement with Vivint, Inc. According to the terms of the Settlement Agreement, the company was accused of using a variety of deceptive practices while going door-to-door offering to install new home security systems or replace existing systems." Again in 2013, the "State of Ohio Attorney General's Office entered into an Assurance of Voluntary Compliance Settlement Agreement with Vivint, Inc. According to the terms of the Settlement Agreement, consumers filed complaints that the company made representations to consumers that its home security equipment was free, but failed to disclose the existence or amount of installation, activation and monitoring fees associated with the system."

Under APX, their reputation wasn't any better. Vivint's known for aggressive selling practices, sending young men and women into customer homes, and acquiring new customers by getting them to setup installations and having new consumers sign contracts. Even so, Vivint has grown and grown and grown. In 2012, they were purchased by one of the world's largest investment firms, Blackstone, for around $2 billion.

Using many of the practices outlined above, Vivint became one of the country's fastest growing security companies. And now that they are in your home, they started Vivint Solar (C- rated by the BBB), and are now reportedly throwing their hat into the ISP ring. So unlike Comcast which is in the home of millions of consumers, and as a result decided to get into home security, Vivint has taken the opposite path, getting into the homes of consumers through security, and moving into providing internet.

All of that said, before you consider allowing a proprietary security system to be installed on your wall, consider what you are doing, especially if you also have to sign a contract. Not only are you locking into that company by way of the contract, you are locking into that company by way of the equipment as well. Should you want to leave at the end of the term of your contract, the expense will involve swapping out the security system in its entirety, sensors and all. And that, depending on how big your home is, can be an expensive proposition... a fact that proprietary system makers are counting on.