FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

Knock, Knock.

Who’s There?

Want to Buy a Home Security System?

Beware of home alarm sales scams.

E veryone wants to feel safe in their home, so when home security salespeople come knocking, their pitch can be convincing. The Federal Trade Commission (FTC), the 

nation’s consumer protection agency, and your state Attorney General urge you to use caution 

when you consider what security system sales agents have to offer. 

During the spring and summer months, home security or alarm companies hire traveling sales 

agents to go door-to-door, making unsolicited “cold calls” on homeowners. In some cases, 

the salespeople use high-pressure or deceptive sales tactics to get potential customers to buy 

expensive, and sometimes substandard, systems or equipment they don’t need.

Before you let anyone inside your home, ask for identification. Some state laws require doorto-door salespeople to tell you their name, the name of the business they represent, and the 

goods or services they wish to sell before asking you any questions or making any statements. 

Other states require salespeople to show you their “pocket card” license and a photo ID. Take 

a few minutes to look over their documentation.
Facts for Consumers

Signs of a Security System Scam

Unscrupulous door-to-door sales agents use a 

variety of approaches and pitches to get you to 

buy an alarm system and monitoring services. 

Here’s what to look out for:

•	 They may make a time-limited offer, 

and claim that you need to act now. For 

example, they may try to get you to sign a 

contract by telling you that the equipment 

is “free.” More than likely, strings are 

attached. For example, to get your “free” 

alarm, you may have to sign a long-term 

and expensive system monitoring contract.

•	 They may pressure their way into your 

home and then refuse to leave. It is not 

impolite or rude to tell a salesperson you’re 

not interested. It’s much easier — and 

safer — to say “no” on the doorstep than 

to try to get the salesperson to leave once 

they’re inside. If a salesperson continues 

to pressure you after you’ve asked them to 

leave, call the police.

•	 They may use scare tactics. For example, 

they may talk about a rash of supposed 

burglaries in your neighborhood. 

Some door-to-door sales agents target 

homeowners who have signs on their properties 

for security systems with other companies. In 

these cases:

•	 The sales agents may state or imply that 

they are from your existing security 

company and that they’re there to 

“upgrade” or “replace” your current 

security system. Once inside your home, 

however, they may install a new security 

system and have you sign papers that 

include a costly contract for the monitoring 

service.

•	 They may claim your security company 

has gone out of business, that they’ve taken 

over the accounts, and that you have to buy 

new equipment and sign new contracts. If 

this happens, call your current monitoring 

company to confirm. Normally, you would 

be notified of a change like this by mail or 

telephone, not by an unannounced visit by 

a representative from another company.

Before you do business with anyone selling 

a home security or alarm system, whether 

they come to your door or you seek them 

out, the FTC and your state Attorney General 

urge you to ask potential contractors for 

the following information. Use it to check 

out the alarm company with the appropriate 

authorities: your state Attorney General 

(www.naag.org), local consumer protection 

agency (www.consumeraction.gov), Better 

Business Bureau (www.bbb.org), and state 

licensing officials (www.nascla.org). If 

the salesperson is reluctant to give you this 

information, consider it a red flag and find 

another company to consider.

•	Contractor’s name 

•	 Street address (no P.O. Box) 

•	 Telephone number 

•	Contractor’s license number 

•	 State that issued the license

•	 Name under which the license is filed 
Facts for Consumers

Buying a Home Security System

Home security systems are designed to protect 

you, your home, and your valuables. They 

vary in price and sophistication. Some systems 

not only can warn you of intruders, but also 

can notify authorities of a medical emergency, 

monitor smoke and carbon monoxide detectors 

and water levels or pressures, and include 

video surveillance. Some systems also are 

linked into your home’s wiring, heating or 

lighting systems, and use your mobile phone or 

computer to control them. 

Most home security alarm installers can provide 

all-inclusive services that include equipment 

plus the installation and monitoring service.

If you’re thinking about buying a home security 

system, the FTC and your state Attorney 

General suggest that you: 

Get references from your friends, family, 

neighbors, co-workers and from the company’s 

current clients, and find out whether the 

equipment was installed within the given time 

frame. Were any equipment problems dealt 

with promptly? Was the system explained 

to everyone living in the home? If there 

was an intrusion, were the police contacted 

immediately?

Check out the companies by entering 

their names in a search engine online. 

Read about other people’s experiences 

with the companies. Try to communicate 

offline if possible to clarify any details. In 

addition, contact your state Attorney General 

(www.naag.org), local consumer protection 

agency (www.consumeraction.gov), and the 

Better Business Bureau (www.bbb.org) to see 

if any complaints are on file.

Verify that the contractor’s licenses are 

current and in good standing. Check with 

the National Association of State Contractors 

Licensing Agencies (www.nascla.org) for the 

appropriate agency in your state.

Get written estimates from several companies, 

and ask plenty of questions. A reputable 

company will not try to sell you anything before 

completing a professional assessment of your 

needs and the layout of your home. Find out:

•	 Who will perform the installation and 

monitor the system? Some companies 

subcontract this work to a third party.

•	 What is the contract period for monitoring? 

One year? More? Are there penalties for 

early termination? What happens if you 

move before the contract term is up?

•	 How much does the monitoring cost? How 

often will you be billed?

•	 Does the company call you before notifying 

the police? 

•	 How soon after the alarm sounds will you 

be notified? 

•	 What happens if the alarm company can’t 

reach you when the alarm is sounding? Is 

the alarm reset? Are the police called? Are 

alternate numbers called? 

•	 What happens if the power goes out? Is 

there a back-up battery system?

•	 What does the warranty cover, and for how 

long? Is it from the manufacturer or their 

installer?
Facts for Consumers

•	 Who is responsible for repairs or upgrades 

to the system?

•	 Does the company offer interactive 

services like smoke and fire detection, 

remote control, video surveillance, email 

notifications and special apps for smart 

phones?

Read the fine print. Once you’ve chosen 

a company, make sure the written contract 

includes all oral promises made by the 

salesperson. Your contract package should 

include: 

•	 Installation price 

•	 Monthly or quarterly monitoring fee 

•	Contract period

•	 Applicable discounts 

•	 A written warranty

•	 The owner’s manual

•	 An explanation of your right to cancel the 

deal

•	Cancellation forms 

The contract also must be dated, and show the 

name and address of the seller. 

Contact your police and fire departments.

Ask whether you need to register your system, 

and if there are fines for responding to false 

alarms. 

Understand that you can cancel the deal. The 

FTC’s Cooling-Off Rule gives you three 

business days to cancel the deal if you sign the 

contract in your home or at a location that is 

not the seller’s permanent place of business. 

You do not have to give a reason for canceling 

your purchase. You have a right to change your 

mind, even if the equipment has already been 

installed. 

The salesperson must give you two copies of a 

cancellation form (one to keep and one to send 

back) and a copy of your contract. The contract 

must be dated, show the name and address of 

the seller, and explain your right to cancel. 

You may have additional consumer protections 

under state law. Check with your state Attorney 

General (www.naag.org), local consumer 

protection agency (www.consumeraction.gov), 

or the Better Business Bureau (www.bbb.org)

For More Information

•	 National Burglar & Fire Alarm Association 

www.alarm.org

•	 Security Industry Alarm Coalition 

www.siacinc.org

The FTC works to prevent fraudulent, deceptive 

and unfair business practices in the marketplace 

and to provide information to help consumers 

spot, stop and avoid them. To file a complaint 

or get free information on consumer issues, 

visit ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. 

Watch a video, How to File a Complaint, at 

ftc.gov/video to learn more. The FTC enters 

consumer complaints into the Consumer 

Sentinel Network, a secure online database and 

investigative tool used by hundreds of civil and 

criminal law enforcement agencies in the U.S. 

and abroad. 

March 2011

Federal Trade Commission

ftc.gov