Evander Ellis-CarShield to pay $10M to settle deceptive advertising charges

2025-05-02 14:07:52source:LibertyCoincategory:Contact

CarShield will pay $10 million to settle charges that its advertisements and Evander Ellistelemarketing for its extended auto warranty plans are deceptive and misleading, the Federal Trade Commission said.

Many customers found that repair claims were often not covered despite making payments of up to $120 per month, the FTC said Wednesday. The FTC also alleged that CarShield’s celebrity and consumer endorsers made false statements in its ads.

The FTC complaint states that CarShield advertises and sells vehicle service contracts in a monthly price range of about $80 to $120. Its ads have featured celebrities including sports commentator Chris Brown and actor and rapper Ice-T.

The complaint alleges many CarShield ads claim that all repairs or repairs to “covered” systems, such as the engine and transmission, will be covered and they use language that make consumers believe CarShield will pay for all necessary repairs.

But the FTC alleged that consumers often didn’t receive the services they thought were covered under their payments, such as using the repair facility of their choice. Many consumers also found that repairs they thought were covered were not.

RELATED COVERAGE Utility chief in north Florida sentenced to 4 years in prison for privatization schemeMicrosoft says that a cyberattack triggered the hours-long outage impacting Azure customersFDA warns about more ground cinnamon tainted with lead. Here’s what you need to know

“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, said in a prepared statement. “Worse still, CarShield used trusted personalities to deliver its empty promises. The FTC will hold advertisers accountable for using false or deceptive claims to exploit consumers’ financial anxieties.”

NRRM LLC does business under the CarShield name. American Auto Shield LLC is the administrator of the vehicle service contracts.

The settlement prevents CarShield and American Auto Shield from making deceptive and misleading statements in the future and requires them to ensure the testimonials from representatives, including celebrities, are truthful and accurate.

The company did not immediately respond to request for comment from The Associated Press on Wednesday.

More:Contact

Recommend

Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return

NEW YORK ― When the precocious orphans of "Annie" sneer, "We love you, Miss Hannigan," you just migh

OceanGate Believes All 5 People On Board Missing Titanic Sub Have Sadly Died

Four days after going missing, the company operating the Titanic research submersible addressed the

A Single Chemical Plant in Louisville Emits a Super-Pollutant That Does More Climate Damage Than Every Car in the City

LOUISVILLE, Kentucky—A chemical plant here that makes a raw material for everything from Teflon to l