The United States Third Circuit Court of Appeals reinstated OSC’s case against Guardian Protection Services when it reversed an order by the District Court for the Western District of Pennsylvania dismissing the case. The development was the latest in an ongoing consumer protection case brought on behalf of Guardian home alarm customers across the country who were billed for services they never received, even after they attempted to cancel their contracts with Guardian. The plaintiff in the case alleges that Guardian’s standard contract imposes illegal contract penalties on customers who try to cancel their home security contracts. Guardian refused to cancel the plaintiff’s contract, and continued to bill him each month, even after he moved and sold his home in Washington, D.C. After the case was dismissed by the district court, the case was appealed to the Third Circuit, which asked the Pennsylvania Supreme Court to interpret Pennsylvania’s consumer protection statute. The Pennsylvania Supreme Court’s decision resolved the question about the rights of out of state consumers who contract with Pennsylvania businesses.
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