Auto Safety / Consumer Organizations Sue Federal Trade Commission, Over Decision Allowing General Motors and Car Dealerships to Engage in False Advertising of Unrepaired Recalled “Certified” Used Cars

The Center for Auto Safety is the nation’s premier independent, member driven, non-profit consumer advocacy organization dedicated to improving vehicle safety, quality, and fuel economy on behalf of all drivers, passengers, and pedestrians.

NEWS for immediate release: February 6, 2017
Contacts: Rosemary Shahan, CARS, 530-759-9440
Michael Brooks, CAS, 202-328-7700 x 113

Auto Safety / Consumer Organizations Sue Federal Trade Commission, Over Decision Allowing General Motors and Car Dealerships to Engage in False Advertising of Unrepaired Recalled “Certified” Used Cars

Today, Consumers for Auto Reliability and Safety (CARS), the Center for Auto Safety, U.S. Public Interest Research Group (PIRG), MASSPIRG, CONNPIRG, and CALPIRG filed a legal case seeking to have an appellate court review and overturn the Federal Trade Commission’s consent orders with General Motors, Lithia Motors, and Jim Koons Management Co., which would allow them to advertise that cars with unrepaired safety recalls are “safe,” “repaired for safety,” passed a “rigorous inspection,” and qualified to be sold as “certified” cars – without getting safety recall repairs performed, if the companies merely provide a contradictory, confusing, misleading, disclaimer that the cars “may” be subject to a safety recall.
The FTC’s Consent Orders set a de-facto standard for the auto industry that allows dealers to deceptively advertise cars with dangerous and potentially lethal safety defects that have killed and maimed people. Many of those defects jeopardize the lives of not only used car buyers, but also passengers and everyone else who shares the roads and adjacent areas, including sidewalks, driveways and parking lots.
“We’re optimistic that the Court will rein in the FTC’s dangerous and irresponsible abuse of its authority. Instead of protecting consumers, the FTC is protecting unscrupulous auto dealers who engage in false and deceptive advertising about the safety of the cars they offer for sale to the public. This is a serious threat to used car buyers, their families, and all who share the roads,” said Rosemary Shahan, President of Consumers for Auto Reliability and Safety.
Read the full release here.