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FTC Sues to Halt 'Your Vehicle Warranty Is About to Expire' Robocalls

May 21, 2009

WASHINGTON — The Federal Trade Commission has filed complaints in federal court in an attempt to halt a "robocall" campaign allegedly engineered to market vehicle service contracts as extensions to manufacturer warranties, according to F&I Management & Technology, a sister publication of Special Finance.

"This is one of the most aggressive telemarketing schemes the FTC has ever encountered," said FTC Chairman Jon Leibowitz. "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. Either way, we intend to shut them down."

The FTC's complaints, leveled against both the promoter and its telemarketing service provider, allege that the companies have employed random, pre-recorded phone messages clearly designed to trick consumers. The widespread campaign has prompted tens of thousands of complaints for calls received at home, work and mobile phone numbers.

The full text of the F&I article can be found here.

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