Reported 3 months ago
CarShield has agreed to pay $10 million to settle allegations from the Federal Trade Commission (FTC) regarding deceptive advertising of its extended auto warranty plans. The FTC claimed that many customers were misled into believing their repair claims would be covered, despite making payments of up to $120 per month. The company featured celebrity endorsements in its advertisements, yet many consumers reported that necessary repairs were not covered as promised. The settlement prohibits CarShield from making misleading claims in the future and mandates accuracy in representative testimonials.
Source: YAHOO