WASHINGTON, D.C. – The Federal Trade Commission is sending more than $9.6 million in refunds to consumers who purchased vehicle service contracts from CarShield and were misled by the company’s advertising, the FTC announced.
In July 2024, CarShield and its contract administrator, American Auto Shield, LLC, agreed to pay nearly $10 million to settle a complaint filed by the Commission. The FTC said the company’s advertisements and telemarketing claims suggested that all vehicle repairs would be covered, that customers would receive rental cars at no cost if their vehicles broke down, and that they could choose their own repair facilities. The Commission reported that many consumers discovered certain repairs were not covered, despite paying monthly fees of up to $120. As part of the settlement, the FTC said CarShield and American Auto Shield are prohibited from making misleading statements about their contracts in the future and must ensure that any endorsements or testimonials accurately reflect customers’ experiences.
The Commission reported that, the refund process will reach 168,179 consumers and advised recipients to cash their checks within 90 days. The FTC said consumers with questions about their payments should contact the refund administrator, Analytics, at 855-298-8877, or visit the FTC website for more information. The agency emphasized that it will never require consumers to pay money or provide account information to receive a refund. The FTC noted that its interactive dashboards provide a state-by-state breakdown of refunds in its cases. The Commission reported that in 2024, its actions returned more than $339 million to consumers nationwide. The Federal Trade Commission stated that it works to promote competition and protect consumers from deceptive practices. The agency added that more information on consumer rights and reporting scams is available at consumer.ftc.gov and ReportFraud.ftc.gov.
Photo: FTC.gov