FTC Files Suit to Stop Robocalls Pushing Vehicle Warranty Extensions

Extended warranties typically are not a good buy. This is why retailers put so much effort into promoting extended warranties.

The Federal Trade Commission is asking a federal court to shut down a telemarketing campaign that has been bombarding U.S. consumers with hundreds of millions of allegedly deceptive “robocalls” in an effort to sell them vehicle service contracts under the guise that they are extensions of original vehicle warranties.

In two related complaints filed in federal court, the Commission took action against both the promoter of the phony extended auto warranties, as well as the telemarketing company that it hired to carry out its illegal, deceptive campaign. In its complaints, the agency contends that the companies are operating a massive telemarketing scheme that uses random, pre-recorded phone calls to deceive consumers into thinking that their vehicle’s warranty is about to expire. Consumers who respond to the robocalls are pressured to purchase extended service contracts for their vehicles, which the telemarketers falsely portray as an extension of the manufacturer’s original warranty.

FTC Files Suit to Stop Illegal Robocalls Pushing Vehicle “Warranty” Extensions
Federal Trade Commission, Plaintiff, v. Voice Touch, Inc., et. al.
Federal Trade Commission, Plaintiff, v. Transcontinental Warranty, Inc., et. al.
How to Steer Clear of Auto Warranty Scams