FTC Investigating GM for Misrepresenting Used Vehicles as Certified Pre-Owned

By on July 24, 2015

General Motors Co. (GM) is being investigated by the U.S. Federal Trade Commission for allegedly advertising for sale vehicles needing recall repairs.

According to GM’s Certified Pre-owned vehicles policy, a vehicle will not be classified as Certified Pre-owned “unless the dealer first performs any needed recall repairs.  GM has instructed its dealers to check for recalls and perform any needed repairs before listing any vehicle as a Certified Pre-Owned vehicle.”

Pre-owned vehicle certification is intended to provide buyers a certain level of assurance regarding a vehicle’s condition and performance.  GM warned that “because of timing issues, or because of dealer error, it is still possible that a vehicle listed on this website needs a recall repair.”  It has a website where prospective buyers can find out further information–www.recalls.gm.com.

“We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations,” GM stated in its SEC filing.  “Such investigations could in the future result in the imposition of material damages, fines, civil consent orders, civil and criminal penalties or other remedies.”

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