The Federal Trade Commission announced a settlement with CarShield following allegations of using deceptive advertising practices to sell vehicle service contracts.
According to the FTC, purchasers were misled about the coverage of certain repairs, with celebrity endorsers like Chris Berman and Ice-T making false statements in the company’s ads.
“For many consumers, a personal vehicle is one of their most valuable assets, and CarShield failed to deliver the promised ‘peace of mind,’ causing financial distress,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.
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The FTC also mentioned that many celebrity endorsers of CarShield falsely claimed to be customers of the company, and consumer testimonials in ads were misleading about the savings from the service.
CarShield offers various plans covering car repairs for mechanical parts, as advertised on their website. Despite having an A+ rating from the BBB, customer ratings are low at 1.6 out of 5.
Scripps News reached out to CarShield for a response.
