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FTC bans scammy companies from ‘calling about your car’s extended warranty’

Illustration of two smartphones sitting on a yellow background with red tape across them that reads “DANGER”
The proposed court order follows a lawsuit opened by the FTC last year that sought to charge operators of an “extended vehicle warranty” telemarketing scam. | Image: Amelia Holowaty Krales / The Verge

Regulators in the US are cracking down on operators of an “extended vehicle warranty” telemarketing scam with action that could see the responsible parties face a lifetime ban from the vehicle warranty industry. Under proposed court orders drawn up on March 23rd, three companies — American Vehicle Protection Corporation (AVP), CG3 Solutions, and Tony Gonzalez Consulting Group — and their owners would be permanently banned from both the extended automobile warranty industry and all outbound telemarketing.

In February 2022, the FTC charged AVP and the two affiliated companies with violating the FTC Act and the Telemarketing Sales Rule. In its complaint, the FTC alleged that AVP falsely claimed to represent dealers and manufacturers,…

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