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

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.

ADT didn't immediately respond to a request for comment.

"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."

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

April 14, 2026 15:36 ET (19:36 GMT)