The Problem Car companies have been soliciting consumers on cellphones and elsewhere. The calls violate the do not call list and frequently make deceptive promises about cost and coverage. “I’m not sure which is worse, the abusive telemarketing tactics of these companies, or the way they try to deceive people once they get them on the phone,” an official said. “Either way, we intend to shut them down.”
FTC Announcement Federal regulators filed lawsuits Thursday against several companies they say are behind a national wave of spam “robo-calls” that warn people their auto warranties are expiring and offer service plans. FTC Seeks to Stop Robocalls
“Federal Trade Commission officials said they asked a federal court in Chicago to halt the illegal telemarketing campaign of “Your Car Warranty Has Expired.” Officials say as many as 1 billion of the nuisance calls have been made to Americans.
FTC Car Warranty
The FTC named Voice Touch and Transcontinental Warranty in the lawsuits. It is seeking injunctions forcing them to return allegedly ill-gotten gains. “I’m not sure which is worse, the abusive telemarketing tactics of these companies, or the way they try to deceive people once they get them on the phone,” Leibowitz said. “Either way, we intend to shut them down.” It took some heavy sleuthing to determine what companies were responsible because they made “extraordinary” efforts to conceal their identities by masking their true phone numbers, he said.
Attorneys general in Arkansas, Indiana and Missouri have taken similar actions over the calls offering deals on extended warranties, which have brought about 300,000 inquiries and 4,000 complaints to the Better Business Bureau from consumers over the past two years. The calls come even if the consumer has signed up for the national “Do Not Call” registry, which is maintained by the FTC.
If people call back and agree to buy policies, the companies often don’t let them see the contracts until they agree to pay. And some people don’t learn until they’ve spent thousands of dollars that the deals don’t cover many types of repairs, according to regulators.”