CarShield fined for misleading ads

CarShield has agreed to pay $10 million to settle allegations from the Federal Trade Commission (FTC) regarding deceptive advertising practices related to its vehicle service contracts. The FTC claimed that CarShield misled consumers through celebrity endorsements, falsely promising coverage for vehicle repairs that were often not included in their plans, leading to financial difficulties for many customers. Despite charging between $80 and $120 per month, customers frequently discovered that their repair claims were denied and that they could not choose their own service centers. The settlement requires CarShield to ensure that all future advertisements provide accurate information and truthful testimonials from endorsers. The FTC emphasized the need for accountability in advertising, particularly when it exploits consumers' financial concerns. CarShield's agreement also entails monitoring their marketing practices for up to 10 years to prevent future misrepresentation.