Federal Trade Commission settled cases against General Motors, 2 other car dealers

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General Motors along with two car dealers just settled numerous accounts of complaints with the Federal Trade Commission as the agency detailed. Moreover, news regarding the grounds of these case released.

Big car manufacturing automobile companies have met with the Federal Trade Commission to settle as reported by ABC News. The article indicated that General Motors, Jim Koons Management, and Lithia Motors are accused of touting the safeness of their cars. Administrative complaints were presented to the three dealers and the parties agreed to a deal. Under this deal, the companies cannot claim the used vehicles as safe until they disclosed that recall repairs are made.

In light with this, the Auto Remarketing specified the report regarding FTC's complaint. In the written report, the complaint is against GM citations regarding the company's representations for certified pre-owned vehicles. Moreover, the agency alleges General Motors of advertising numerous CPO vehicles at its local distributors without letting the buyers know the some vehicles are subject to unrepaired recalls regarding safety issues. With the two companies, FTC's complaint is specified as companies' guarantee of having quality inspection.

Lastly, Sys-con Media elaborated the effect of this deal with the three companies. According to them, the consent orders would remain in effect for 20 years and the companies will be prohibited from claiming that used vehicles are safe unless they are free of unrepaired safety recalls. Further, the orders would prohibit the companies in misrepresenting any facts about the safety of the used cars they will advertise.

Federal Trade Commission have just settled a deal with three car dealers after complaints emerged on their table. The three companies, General Motors, Jim Koons Management and Lithia Motors were accused regarding the validity of their used cars. Now, the FTC gave a sanction to the three companies with a full effect of 20 years and inhibiting them to misrepresent any facts further.

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General Motors, Federal Trade Commission, FTC

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