August 26, 2016
FTC Sells Out Consumers & Justice Department in Consent Order Allowing GM to Sell
Certified Used Cars With Outstanding Safety Recalls
In allowing GM to sell unrepaired vehicles with outstanding safety recalls, the Federal Trade Commission (FTC) not only is out-of-touch with vehicle safety in America but also jeopardizes the Justice Department’s Consent Settlement in the GM ignition switch mass defect that killed at least 174 consumers. In a letter to US Attorney for the Southern District of NY Preet Bharara, CAS Executive Director Clarence Ditlow wrote:
In a proposed consent agreement with General Motors, the Federal Trade Commission would emasculate Section 15(a)(4)of the DPA by allowing vehicles with open recalls to be sold in GM’s certified pre-owned (“CPO”)program.
There is no place in a CPO program for vehicles with open recalls which endangers the life of anyone who buys such a vehicle.
We call on your office to promptly step in and request the Commission to put the proposed GM order on hold so that the Independent Monitor’s team has a full opportunity, with a clean slate, to review, assess, and make recommendations regarding GM’s procedures for addressing the known defects of open recalls in certified pre-owned vehicles. This is the time to show how the DPA can benefit consumers.
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CAS Letter to US Attorney Preet Bharara – 8/25/16
- Agreement Containing Consent Order
- Complaint Exhibits A-F
- Analysis of Proposed Consent Order to Aid Public Comment
- PRESS RELEASE: GM, Jim Koons Management, and Lithia Motors Inc. Settle FTC Actions Charging That Their Used Car Inspection Program Ads Failed to Adequately Disclose Unrepaired Safety Recalls