The Federal Trade Commission is investigating General Motors for allegedly not conducting recall repairs on certified pre-owned vehicles. If the government agency finds violations, then the automaker could face fines or even criminal penalties. At this time, the extent of the accusations aren't yet fully known.
The announcement of the investigation came in the company's second-quarter financial filing with the Securities and Exchange Commission, according to The Detroit Free Press. In those documents the company said: "On June 3, 2015 we received notice of an investigation by the Federal Trade Commission concerning certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs. We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations." GM didn't estimate any possible monetary loss from this inquiry "because these matters involve significant uncertainties."
The FTC website doesn't currently list any information about this investigation into GM. According to The Detroit Free Press, it's also not clear whether the actual dealers could also be under examination for these alleged violations. When contacted by Autoblog for comment, company spokesperson James Cain said that the automaker is "not commenting on the FTC investigation outside of our disclosure in the 10Q."
The FTC has gone after car dealers' practices many times in recent years. In many cases the problem was deceptive advertising techniques to lure customers in. Another major problem has been salespeople tacking on additional charges that people didn't want.
The announcement of the investigation came in the company's second-quarter financial filing with the Securities and Exchange Commission, according to The Detroit Free Press. In those documents the company said: "On June 3, 2015 we received notice of an investigation by the Federal Trade Commission concerning certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs. We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations." GM didn't estimate any possible monetary loss from this inquiry "because these matters involve significant uncertainties."
The FTC website doesn't currently list any information about this investigation into GM. According to The Detroit Free Press, it's also not clear whether the actual dealers could also be under examination for these alleged violations. When contacted by Autoblog for comment, company spokesperson James Cain said that the automaker is "not commenting on the FTC investigation outside of our disclosure in the 10Q."
The FTC has gone after car dealers' practices many times in recent years. In many cases the problem was deceptive advertising techniques to lure customers in. Another major problem has been salespeople tacking on additional charges that people didn't want.
Sign in to post
Please sign in to leave a comment.
Continue