General Motors and two dealer groups have settled complaints from the Federal Trade Commission that they touted the safety of used cars in advertising yet sold the cars without making recall repairs.
The agency says Jim Koons Management, Lithia Motors and GM were named in administrative complaints. Under the deal, the companies can’t claim that used vehicles are safe unless recall repairs are made or recalls are disclosed. They also have to notify people who bought used cars with open recalls after July 1, 2013.
GM says it changed its certified used car marketing last year to address FTC concerns.
The FTC says companies that advertise vehicle inspections and safety must be honest about recalls. The agency says it has taken about 40 actions to protect car buyers since 2012.
Filed Under: Industry regulations