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

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CarShield ordered to pay $10 million federal settlement over deceptive ads
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Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.

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.

” 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, in a statement. 'Worse still, CarShield used trusted personalities to deliver its empty promises,' Levine said.

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