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US government settles over dealership sales of recalled cars

Richard Edwards · 0 comments

America’s Federal Trade Commission has reached settlements with General Motors and two dealerships over the sale of recalled cars.

According to the Wall Street Journal FTC alleged the auto maker advertised cars as certified preowned vehicles at local dealerships even though they were subject to previously announced safety recalls that had not been repaired.

According to the FTC’s complaint, those cars had defects that could cause serious injury, including those affected by the ignition switch defect.

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GM advertises that Certified Pre-Owned Vehicles pass a 172-point vehicle inspection and reconditioning process conducted by highly trained technicians, who adhere to factory standards to ensure the vehicle is in excellent condition.

“We made changes to our certified preowned marketing program last year to address the FTC’s concerns and we are pleased with the proposed resolution of the matter,” a GM spokesman told the Wall Street Journal.

Under the proposed deal, GM and the dealers would be banned from claiming their used vehicles are safe or have been subject to a rigorous inspection unless all safety recalls have been addresses or disclosed – it would remain in place for 20 years.

Richard Edwards

Richard Edwards is one of the owners of Auto Media Group and leads its editorial efforts. Richard has been writing about New Zealand’s automotive industry and dealer community for nearly two decades. The knowledge and contacts built up over that time gives our publications leads and insight others can’t match. He is also the president of the New Zealand Motoring Writers’ Guild.

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