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.
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.
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