CarShield has agreed to pay $10 million to settle U.S. Federal Trade Commission charges of deceptive advertising 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 month, and bans further misrepresentations by celebrity endorsers. CarShield's alleged deception included claims that consumers would never pay for repairs to 'covered' parts such as engines and transmissions, would receive rental�cars when their�cars broke down, and could use repair shops of their choice.
'Instead of delivering the 'peace of mind' promised by its advertisements,�CarShield left many consumers with a financial headache,' Samuel Levine, the FTC's consumer protection chief, said in a statement. 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, as well as Ice-T. None was accused of wrongdoing.
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CarShield ordered to pay $10 million federal settlement over deceptive adsRob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
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