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http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/25/BAJJV8DPQ.DTL&feed=rss.bayarea
Contra Costa says alarm giant ADT hides rate hikes from new customers

Henry K. Lee, Chronicle Staff Writer

Monday, February 25, 2008
Contra Costa County prosecutors filed suit today against alarm-company giant ADT Security Services, saying customers aren't told up front about fee increases and cancellation costs.

The suit, filed in Contra Costa County Superior Court, said ADT requires customers to enter into two- or three-year contracts but fails to tell them about the costs of their obligations.

Although the company reserves the right to increase charges, ADT doesn't tell its customers about the amount of such increases when they sign a contract, the suit said.

The suit says state law requires that "the total cash price for the goods or services purchases be disclosed on any retail installment contract."

"There's really no reason that they can't let people know in advance that the increases are coming," said Deputy District Attorney Lon Wixson, who filed the suit. "You can't have cake and eat it, too. You can't hold consumers in for three years at a fixed price and also be able to raise rates."