Jim Henry is a special correspondent for Automotive News
Here's a bit of buzz from vendor circles: Some of the companies that got in trouble last year for using misleading and aggressive sales tactics to sell extended-service contracts directly to consumers could be back at it.
There's a buzz going around service contract vendor circles that some of the companies that got in trouble last year for using misleading and aggressive sales tactics to sell extended-service contracts directly to consumers could be back at it.
Only now they may have branched out into other products, like roadside assistance and wheel-and-tire policies.
According to the Federal Trade Commission, it wouldn't be the first time scammers changed products but stuck with the same sleazy tactics.
Earlier this year the feds cited a company for making "robo calls" to sell extended-service contracts. In a settlement, the company accepted a ban from telemarketing altogether. A few years ago, that same company signed a consent agreement and agreed to repay consumers $185,000, promising it would stop using similar tactics to sell vacation packages.
As fast as regulators write new rules, somebody finds a way around them.
You can reach Jim Henry at autonews@crain.com.
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