The stipulated order settling the complaint, which still must be approved by the court, bars CarShield from making deceptive or misleading statements in the future, and requires the company to ensure endorser testimonials are “truthful, accurate, and not deceptive.” The company will also pay $10 million to refund customers who were defrauded by its actions.
“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.”
CarShield ads featured well-known celebrities and professional athletes, including actors Ice-T, Vivica A. Fox, Adrienne Janic, Ernie Hudson, Allen Iverson, and Rick Flair —all were represented as “customers” or “real CarShield Customers.”
In fact, the FTC complaint alleged they were not actual customers and had never used a CarShield vehicle service contract.
Despite thousands of complaints and the legal action taken by the FTC more than a month ago, the company still has an “A” rating with the Better Business Bureau.
Despite thousands of complaints and the legal action taken by the FTC more than a month ago, the company still has an “A” rating with the Better Business Bureau.
Proof that the BBB is an obsolete organization, that long ago gave up on keeping companies, even member companies in check. Have you even heard a company brag about being a member in the past 15 years? I doubt it, the advent of the internet, instantaneous worldwide uncensored communication (and review sites like Yelp) exposed the truth of greedy companies, and uselessness of the BBB
No comments:
Post a Comment