They also falsely claimed that consumers can get a full refund of their down payment or full payment within 30 days of buying the warranty if they are not happy with it. In addition to misrepresenting that they either are, or are associated with, the consumers’ vehicle manufacturer or dealer, the defendants’ telemarketers have made false promises that they can provide “bumper to bumper” or “full vehicle” coverage for prices ranging between $2,800 and $3,400. ”Īccording to the complaint, headquartered in Pompano Beach, Florida, AVP and several related corporate and individual defendants violated both the FTC Act and the Commission’s Telemarketing Sales Rule (TSR) by calling consumers, many of whom were on the Do Not Call Registry, and attempting to sell them the warranties. “ The truth is that the warranties didn’t come from the manufacturer, didn’t cover the repairs people needed, and weren’t sold legally. “ AVP blasted consumers with illegal calls and made bogus claims about bumper-to-bumper warranties ,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. (AVP) and related defendants bilked consumers out of more than $6 million over the last four years, pretending to represent their dealer or car manufacturer, and providing coverage much more limited than represented. The Federal Trade Commission is taking action in federal court against a Florida-based group of defendants it alleges have called hundreds of thousands of consumers nationwide to pitch them expensive “extended automobile warranties” using deceptive telemarketing tactics.Īccording to a complaint filed in federal district court, American Vehicle Protection Corp. About the FTC Show/hide About the FTC menu items. News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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