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Aftermarket Warranty Company CarShield Settles Deceptive Advertising Suit For $10 Million

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The Federal Trade Commission says CarShield deceived customers and used celebrities to do it

CarShield just agreed to pay $10 million to the FTC to settle deceptive advertising charges. The FTC also accused it of using celebrity endorsements to deceive customers. Now CarShield will be under scrutiny for up to a decade to ensure it doesn't revert to these practices. Aftermarket car warranty companies sometimes get a bad rap and stories like this play a role.

Instead of delivering the ‘peace of mind’ promised by its advertisements, CarShield left many consumers with a financial headache,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Worse still, CarShield used trusted personalities to deliver its empty promises. The FTC will hold advertisers accountable for using false or deceptive claims to exploit consumers’ financial anxieties.” https://youtu.

 

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