Ohio Attorney General Jim Petro has sued an Arizona company, alleging it used deceptive direct marketing tactics that misled consumers into believing the company was associated with the recipient’s auto dealership car manufacturer.
The lawsuit also alleges that Car Care Warranty, LLC (doing business as Vehicle Owner Warranty Notification Center) telemarketed in Ohio without being registered with the Attorney General as a telephone solicitor.
Attempts to reach Car Care Warranty were not successful at deadline.
An Attorney General investigation allegedly uncovered violations of the state’s Consumer Sales Practices Act (CSPA) and Telephone Solicitation Sales Act (TSSA) in Car Care’s use of direct mail and telemarketing to sell extended service contracts.
The probe also allegedly revealed that the company is not associated with any auto dealer or manufacturer and that the advertising and sales pitch misled consumers.
According to Petro, complaints stated that the extended service contracts would cost approximately $2,000, with a $400 down payment usually required. Some complaints allege that consumers did not receive the contracts in a timely manner or that Car Care did not honor requests for refunds.
Car Care also allegedly violated the TSSA by not registering as a telephone solicitor with the Attorney General’s Office, failing to maintain a $50,000 surety bond, and not getting written permission from consumers before they billed them for the extended service contracts.
Petro is requesting that Car Care reimburse all consumers who have been damaged by the actions of the company, pay a civil penalty of $25,000 per violation for any CSPA violations, and pay a civil penalty of up to $25,000 for each TSSA violation.
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