Smart Trade Insights
  • Business
  • Economy
  • Investing
  • Politics
Top Posts
Tech 5: US Government Strikes Big Tech Deal,...
Crypto Market Update: Bitcoin Pulls Back After New...
Playboy moving its headquarters to Miami Beach and...
Crypto Market Update: Bitcoin’s New High, Ethereum ETFs...
Top 5 Small-cap Pharma Stocks of 2025
Brien Lundin: Gold at New US$3,000 Floor, Silver...
Brunswick Exploration Consolidates Mirage Ownership
Westport Files Preliminary Short Form Base Shelf Prospectus...
Element79 Gold Corp Announces Corporate Update and Strategic...
OPINION — Goldenomics 103: Gold Protects and Performs
  • Business
  • Economy
  • Investing
  • Politics

Smart Trade Insights

Business

CarShield ordered to pay $10 million federal settlement over deceptive repair coverage ads

by admin August 2, 2024
August 2, 2024
CarShield ordered to pay $10 million federal settlement over deceptive repair coverage ads

CarShield, a company that sells vehicle service contracts to automobile owners that it claims will cover the cost of certain repairs, has agreed to pay $10 million in a settlement with federal regulators over charges that its marketing tactics were deceptive and misleading.

In a statement Wednesday, the Federal Trade Commission said CarShield, which employs celebrity endorsers including rapper and actor Ice-T and sports commentator Chris Berman, had falsely lured customers with the promise of ‘peace of mind’ and ‘protection’ from the cost and inconvenience of vehicle breakdowns through its contracts.

The FTC also charged American Auto Shield, LLC (AAS), the administrator of CarShield’s vehicle service contracts, in the scheme.

The agency said that at least one ad, which ran 18,000 times on television, stated, ‘With CarShield’s administrators, they make sure you don’t get stuck with expensive car repair bills like this.’ It also touted CarShield contracts as ‘your best line of defense against expensive breakdowns.’

Yet many purchasers discovered that their repairs were not covered, despite making payments of up to $120 per month for CarShield’s product, the FTC said. 

‘Instead of delivering the ‘peace of mind’ promised by its advertisements, CarShield left many consumers with a financial headache,’ Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement.

‘Worse still, CarShield used trusted personalities to deliver its empty promises,’ Levine said. ‘The FTC will hold advertisers accountable for using false or deceptive claims to exploit consumers’ financial anxieties.”

In a statement, CarShield said that while it disagreed with ‘many’ of the FTC’s assertions, it shares the agency’s ‘commitment to helping customers fully understand exactly what we provide and the value we offer.’

It said that its marketing efforts now include additional details about the elements of typically covered car repair and that full plans are now ‘easily viewed prior to making a purchase decision.’

And it said it had expanded its Shield Repair Network ‘by adding more than 10,000 preferred car repair shops, and added a concierge system to help customers quickly locate a repair facility convenient for them.’

A representative for AAS did not respond to a request for comment.

CarShield, based in Missouri, has an A+ rating from the Better Business Bureau — but the company’s BBB listing features more than 300 pages of complaints and a 1.6 out of 5 customer rating. A recent report from WDAF-TV of Kansas City, Missouri, said CarShield had sued the BBB, with the case being settled out of court.

American Auto Shield, based in Colorado, likewise has a 2.9 customer rating despite an official A+ rating from the BBB.

This post appeared first on NBC NEWS

previous post
Wayfair CEO likens home goods slowdown to 2008 financial crisis
next post
Sports streaming venture from Fox, Disney and Warner Bros. priced at $42.99 a month

You may also like

Disney rolls out line-skipping park passes costing up...

October 18, 2024

Nvidia CEO Huang says AI has to do...

March 1, 2025

NBA star Russell Westbrook launches AI-enabled funeral planning...

May 8, 2025

Harvard’s battle with the Trump administration is creating...

April 19, 2025

Starbucks shakes up its leadership again, adding two...

January 30, 2025

Tesla recalls 1.8 million vehicles over unlatched hood...

August 1, 2024

Trump implies government could cut contracts and subsidies...

June 8, 2025

Bucking trend, McDonald’s vows no egg surcharges as...

February 27, 2025

As his feud with Trump reignites, Musk’s business...

July 3, 2025

Nvidia’s CEO did a Q&A with analysts. What...

March 22, 2025

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Tech 5: US Government Strikes Big Tech Deal, Perplexity Plots Expansion

      August 17, 2025
    • Crypto Market Update: Bitcoin Pulls Back After New High, Ethereum ETF Inflows Hit Nearly US$3 Billion

      August 17, 2025
    • Playboy moving its headquarters to Miami Beach and opening a new club

      August 17, 2025
    • Crypto Market Update: Bitcoin’s New High, Ethereum ETFs Outpace Bitcoin 5-to-1

      August 16, 2025
    • Top 5 Small-cap Pharma Stocks of 2025

      August 16, 2025
    Promotion Image

    banner ads

    Categories

    • Business (818)
    • Economy (829)
    • Investing (2,635)
    • Politics (737)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: smarttradeinsights.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 smarttradeinsights.com | All Rights Reserved