CarShield has agreed to pay $10 million to settle U.S. Federal Trade Commission charges of deceptive advertising for its vehicle service contracts, including TV ads featuring the actor Ice-T and other celebrities.
The settlement addresses alleged misrepresentations dating to 2019 over how much coverage consumers could expect under the contracts, which cost about $80 to $120 per month, and bans further misrepresentations by celebrity endorsers. CarShield's alleged deception included claims that consumers would never pay for repairs to 'covered' parts such as engines and transmissions, would receive rental�cars when their�cars broke down, and could use repair shops of their choice.
'Instead of delivering the 'peace of mind' promised by its advertisements,�CarShield left many consumers with a financial headache,' Samuel Levine, the FTC's consumer protection chief, said in a statement. The celebrity endorsers have also included sportscaster Chris Berman, Los Angeles Dodgers pitcher Walker Buehler, actors Vivica A. Fox and Ernie Hudson and TV host Adrienne Janic, as well as Ice-T. None was accused of wrongdoing.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CarShield ordered to pay $10 million federal settlement over deceptive adsRob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
Read more »
Aftermarket Warranty Company CarShield Settles Deceptive Advertising Suit For $10 MillionThe Federal Trade Commission says CarShield deceived customers and used celebrities to do it
Read more »
CarShield fined $10 million for deceptive advertising chargesCarShield advertisements have featured celebrities who the FTC alleges made false statements in the ads, such as 'you'll never pay for expensive car repairs again.'
Read more »
CarShield to pay $10 million fine to feds for 'deceptive advertising'Rooted in fact-based, transparent reporting, Newsy is an award-winning opinion-free network owned by the E.W. Scripps Company that is relentlessly focused on “the why” of every story and seeks to enable a more intimate and immersive understanding of the issues that matter.
Read more »
CarShield to Pay $10M Fine to Settle Deceptive Ads CaseThe Federal Trade Commission filed a complaint against CarShield over misleading advertisements and marketing efforts.
Read more »
CarShield to pay $10M to settle deceptive advertising chargesThe Federal Trade Commission says that CarShield will pay $10 million to settle charges that its advertisements and telemarketing for vehicle service contracts are deceptive and misleading
Read more »