ADT to Pay More Than $1.3M to Resolve Allegations of Illegally Charging Servicemembers -- Update

Published: 2026-04-14 16:07:49 ET ADT

Published on 04/14/2026 at 04:07 pm EDT - Modified on 04/14/2026 at 04:08 pm EDT

By Elias Schisgall

ADT will pay more than $1.3 million to resolve allegations that the home security services company unlawfully charged thousands of servicemembers for cancelling their ADT contracts after they received military relocation orders.

The Justice Department on Tuesday said ADT had imposed 30-day notice requirements on servicemembers who terminated their contracts with the company. Those requirements violated the Servicemembers Civil Relief Act, which allows servicemembers to end some consumer contracts after receiving a relocation order, the DOJ said.

The company will pay $1.26 million to more than 3,400 affected servicemembers, as well as $79,380 in civil penalties, the DOJ said. ADT will also make changes to its policies and training to avoid future violations of the SCRA.

"The law is clear -- when servicemembers receive relocation orders, they have the right to terminate contracts without penalty beyond the current billing period," U.S. Attorney Jason Reding Quiñones said. "This settlement returns over $1.3 million to affected servicemembers and ensures that companies understand those protections are not optional."

An ADT spokesperson said the settlement doesn't constitute an admission of wrongdoing.

ADT cooperated fully with the DOJ, the spokesperson said, adding that the company has enhanced its processes to comply with the SCRA.

"ADT is committed to supporting members of the U.S. military and their families, and we take our obligations under the SCRA seriously," the spokesperson said. "We appreciate the service and sacrifice of the men and women of our armed forces and remain committed to continuous improvement in how we serve our customers."

Write to Elias Schisgall at [email protected]

(END) Dow Jones Newswires

04-14-26 1607ET