Technically it's not encryption either. So, on a marketing and technical level, it's pretty bad.
Where's the line? "This alarm uses rolling code" and the rolling code is 1,2,3,4. Is that dodgy?
So if I am allowed chosen plaintext (i.e. I can call up the ARC and tell them whatever quote code I chose, and get a response), then it wouldn't require many pairs to get the keys. I don't know how possible this would be, as I think they would have to see an alarm activation, which means I would need a real quote/code pair.
If it's only known plaintext (i.e. I am using valid quote codes generated by the alarm), it would be quite a lot more pairs required. Still a tiny number compared to the security a 2048-bit key affords.
All of this would have been caught by an undergraduate doing a cryptography coursework "Is this homebrewed MAC secure?".
It wouldn't have been hard to make this secure at all. Actually, I think it would be less effort just using something ready made.