On May 14, 2009, the Federal Trade Commission (“FTC”) filed suit in the Northern District of Illinois against two companies involved in making millions of allegedly deceptive “robocalls” to consumers in an effort to sell them vehicle service contracts under the guise of extensions of the original vehicle warranties. The FTC complaint against the robocaller names Florida-based Voice Touch, Inc. and two of its principals as well as Illinois-based Network Foundations, LLC and a principal of that company. The complaint against the seller of the extended auto warranties names Florida-based Transcontinental Warranty, Inc., and its president and CEO.
The robocalls consist of a pre-recorded message that informs consumers that their original vehicle warranty is about to expire and they should “extend coverage before it’s too late.” The so-called “warranty specialists” mislead consumers into believing the seller of the extended warranty is affiliated with the dealer or manufacturer of the consumer’s vehicle. The “warranty specialists” then attempt to sell consumers a service contract which is falsely portrayed as an extension of the vehicle’s original warranty.
In addition to the robocalls, the FTC’s complaint against Transcontinental Warranty alleges that it mails out deceptive postcards to consumers warning them about imminent expiration of their auto warranties. The FTC has charged the defendants with engaging in deceptive business practices in violation of the FTC Act and violation of the FTC’s Telemarketing Sales Rule by calling consumers whose numbers were on the National Do Not Call Registry.
If you were deceived into purchasing an extended warranty from Transcontinental Warranty, Inc., please contact us to discuss your legal options.