Lithia Motors Settled FTC Charges Over Used Cars With Unrepaired Safety Recalls
Company: Lithia Motors, Inc.
Summary
In 2016, Lithia Motors Inc. settled Federal Trade Commission allegations concerning advertising for used vehicles. The FTC alleged that Lithia promoted the rigor of its used-car inspection programs while failing to adequately disclose that some vehicles offered for sale were subject to unrepaired safety recalls. The agency said safety is a major consideration for car buyers and that dealers touting comprehensive inspections need to clearly disclose unresolved safety recalls. The FTC's final consent order imposed requirements governing Lithia's future representations about vehicle inspections and safety recalls. Sources: Federal Trade Commission https://www.ftc.gov/news-events/news/press-releases/2016/01/gm-jim-koons-management-lithia-motors-inc-settle-ftc-actions-charging-their-used-car-inspection Federal Trade Commission case page https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3102-lithia-motors-inc-matter