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FTC Sanctions GM, Dealer Groups Over Recalls

Commission cites groups for failing to fix recalls.

by on Jan.29, 2016

GM and two dealer groups were cited by the Federal Trade Commission for issues involving failing to make recall repairs.

General Motors and two major dealer groups, Jim Koons Management and Lithia Motors Inc., have agreed to settle separate Federal Trade Commission administrative complaints involving the inspections of used cars they had put on sale.

The FTC claimed that all three that each had advertised how rigorously they inspect vehicles, but failed to disclose some of the used cars they were selling were subject to unrepaired safety recalls.

Recall News!

Jim Koons Management, which has 15 dealerships in the Mid-Atlantic region, and Oregon-based Lithia Motors Inc., which has more than 100 stores in the West and Midwest, are two of the nation’s largest used-car dealers. (more…)