Company ordered to pay refunds in telemarketing “extended vehicle warranty” scheme

WASHINGTON, D.C. (WWLP) – The Federal Trade Commission (FTC) has settled with a company that allegedly used deception in marketing extended motor vehicle warranties.

According to a complaint filed in the U.S. District Court for the Southern District of Florida, American Vehicle Protection Corp. (AVP) and related defendants took over $6 million from people under false pretenses, violating both the FTC Act and the Commission’s Telemarketing Sales Rule (TSR). Telemarketers called consumers, some who were on the “Do Not Call” list, falsely saying they represented the car dealership or manufacturer and offered coverage much more limited than represented.

“AVP blasted consumers with illegal calls and made bogus claims about bumper-to-bumper warranties,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The truth is that the warranties didn’t come from the manufacturer, didn’t cover the repairs people needed, and weren’t sold legally. We are holding AVP accountable.”

As a result of the agreement, the FTC will be sending refunds to 18,255 consumers worth more than $449,000.

To report fraud, or bad business practices go to the FTC website.

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