On 
July 6, 2023, the FTC announced that it had entered into a consent order with a Florida-based vehicle extended warranty provider and its principal under which both agreed to cease all operations and any further involvement with extended automobile warranty sales as a result of what the FTC alleged were deceptive marketing practices. The FTC alleged that the company violated the FTC Act, 15 U.S.C. §§ 53(b) and 57b, and the Telemarketing Sales Rule, 16 C.F.R. § 310, by making deceptive, unsolicited telemarketing calls. Specifically, the FTC alleged that the company placed unsolicited telephone marketing calls to consumers and misrepresented its affiliation with car manufacturers and dealerships. The FTC further alleged that the company deceptively claimed that its products offered warranty protection beyond that included in the actual policies.
As a result of the consent order, the company and its principal agreed to a permanent injunction constituting a lifetime ban from conducting extended automobile warranty sales. The defendants further agreed to pay $6.5 million in monetary penalties, with $6 million suspended.