The Federal Trade Commission is taking action in federal court against a Florida-based group of defendants it alleges have called hundreds of thousands of consumers nationwide to pitch expensive “extended automobile warranties” using deceptive telemarketing tactics. According to a complaint filed in federal district court, defendants bilked consumers out of more than $6 million over the last four years, pretending to represent their dealer or car manufacturer and providing coverage much more limited than represented.

“AVP blasted consumers with illegal calls and made bogus claims about bumper-to-bumper warranties,” said Samuel Levine, Director of the FTC's Bureau of Consumer Protection. “The truth is that the warranties didn't come from the manufacturer, didn't cover the repairs people needed, and weren't sold legally.”

In addition to misrepresenting that they either are, or are associated with, the consumers' vehicle manufacturer or dealer, the defendants' telemarketers have made false promises that they can provide “bumper-to-bumper” or “full vehicle” coverage for prices ranging between $2,800 and $3,400. They also falsely claimed that consumers can get a full refund of their down payment or full payment within 30 days of buying the warranty if they are not happy with it.

In filing the complaint, the Commission is seeking an order barring the defendants from such illegal conduct, including:

• Violating the TSR through their illegal and deceptive telemarketing practices.
• Remotely creating and depositing remote checks.
• Violating the DNC Registry rules by calling consumers whose phone numbers are on the Registry.
• Failing to pay the fees required to access the numbers on the Registry and scrub them from their call lists.