In 2018, a number of consumers in the Gulf Coast Region of the State of Alabama began complaining to the Alabama Attorney General about price increases in their termite protection coverage. Because these price increases were substantial, Alabama Attorney General Steve Marshall, along with the Alabama Department of Agriculture and Industries, began to investigate.
The Alabama Attorney General’s investigation revealed that, during the last several years, consumers residing in Mobile and Baldwin Counties, along with parts of the surrounding counties, began experiencing a higher incidence of termite infestation. The investigation also revealed that Terminix substantially raised annual termite protection costs and, with some consumers, had not retreated their homes or businesses for many years.
The Attorney General and Terminix began working together to resolve the issues. The Terminix Corporation—under new leadership—fully cooperated with the investigation. The Alabama Attorney General and Terminix reached a settlement in 2020 that was filed with the Circuit Court of Montgomery County, Alabama and that is memorialized in the Consent Judgment.
The Consent Judgment creates a $25 million consumer fund that should address all claims by all consumers who were charged high renewal prices for Terminix termite protection. The Consent Judgment also addresses consumers who cancelled their Terminix contracts because of the price increases, by allowing those consumers to have their Terminix contract reinstated at the 2018 rate or receive (1) a one-time payment of $650.00 or (2) the difference between their 2018 Terminix rate and the cost incurred to obtain new termite protection treatment from a new service provider. Terminix also agreed to a 7-year payment increase cap that limits its contract increases to 5% plus the Consumer Price Index.
The Consent Judgment also creates a quick and easy process for Terminix consumers throughout the State of Alabama to seek compensation or relief for any complaint they have been unable to resolve with Terminix. That process is administered by the Receiver and is described in more detail throughout this website. By navigating through this website, you can read in further detail about your rights and discover what relief you are due under the Consent Judgment. The consumer fund will be operational for a period of two (2) years and will terminate on December 1, 2022.