AutomobileShield has agreed to pay $10 million to settle U.S. Federal Trade Commission charges of deceptive promoting 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 thirty days, and bans further misrepresentations by celebrity endorsers.
AutomobileShield’s alleged deception included claims that customers would never pay for repairs to “covered” parts comparable to engines and transmissions, would receive rental automobiles when their automobiles broke down, and will use repair shops of their alternative.
The FTC objected to AutomobileShield’s assurance of “peace of mind,” and claims that “you will not get stuck with one other high repair bill” and “you may never pay for expensive automobile repairs again.”
It also said many celebrity endorsers who claimed they used AutomobileShield’s service contracts had not done so.
“As a substitute of delivering the ‘peace of mind’ promised by its advertisements, AutomobileShield left many consumers with a financial headache,” Samuel Levine, the FTC’s consumer protection chief, said in an announcement.
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, in addition to Ice-T. None was accused of wrongdoing.
AutomobileShield didn’t admit or deny wrongdoing in agreeing to settle. The settlement also covers American Auto Shield, which administers its service contracts.
In an announcement, AutomobileShield General Counsel Michael Automobileter said the corporate disagreed with many FTC claims but was committed to helping consumers understand what they’re paying for, including on its website.
He also said AutomobileShield is “making very clear that every one spokespeople in our ads are actual AutomobileShield customers.”AutomobileShield can be referred to as NRRM LLC and based in St. Peters, Missouri, a St. Louis suburb.
This Article First Appeared At www.autoblog.com
