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CarShield promises to be a money-saving means to escape some of the crushing expenses of car ownership. However, the organization recently agreed to pay $10 million in fines for its less-than-forthcoming advertising practices, including ads featuring Law & Order star and rapper, Ice-T. Tragically, the settlement asserts the company made some deceptive claims about its repair contracts. 

The U.S. Federal Trade Commission fined CarShield $10 million for ‘deceptive advertising’ of its services

CarShield offers payment for pricey car repairs in exchange for a monthly fee from its contract holders. However, the United States Federal Trade Commission (FTC) fined the company $10 million for its misrepresentative advertising practices on Wednesday. 

The settlement covers inaccuracies going back to 2019 and a pre-pandemic landscape, per Reuters. Specifically, the settlement names the amount of coverage that clients could conceivably expect from their contracts. 

In addition to calling out the misrepresented coverage amounts, the settlement bans the company from further inaccuracies in its advertisements. The advertisements in question feature notable celebrities like Ice-T, Vivica A. Fox, Walker Buehler, Chris Berman, and Ghostbusters franchise star, Ernie Hudson. 

Not even a super-famous TV cop like Odafin “Fin” Tutuola (Ice-T) could save the company from its troubles. It should be said that the celebs haven’t been accused of being part of CarShield’s wrongdoing. 

However, the company’s ads state that “you won’t get stuck with another high repair bill” and “you’ll never pay for expensive car repairs again.” Consumers would pay around $80 to $120 monthly in exchange for insurance policy-esque coverage of vehicle repairs. But the FTC’s consumer protection chief, Samuel Levine, disagrees with the absolute “never” statement.

“Instead of delivering the ‘peace of mind’ promised by its advertisements, CarShield left many consumers with a financial headache,” Levine said of the settlement. Despite agreeing to pay the fines, the company didn’t confirm or deny doing anything wrong.

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Erik Sherman

Erik Sherman joined the MotorBiscuit team as an Autos Writer in 2022. An admitted petrolhead and an avid motorcyclist, Erik has owned everything from classic cars to motorcycles to modern driver’s cars. Erik also has extensive experience with military and emergency vehicles, ranging from ambulances and fire engines to MRAPs and M-ATVs. Erik is an eager car and motorcycle reviewer with experience covering everything from sports cars to pontoon boats and jet skis.

Erik holds a Bachelor’s Degree in International Relations (IRG) from the University of Texas at Austin and has studied Chinese, Energy, and European Politics at the University of Glasgow in Scotland. Erik’s background is unorthodox; he is a United States Marine Corps (USMC) combat veteran, water survival practitioner, and a former firefighter/EMT. Additionally, Erik is a regular volunteer and former instructor with the American Red Cross (ARC).