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FTC Probes GM Over Dealers Who Sold “Certified” Used Cars That Need Recall Fixes
General Motors Co. has disclosed it is the target of a Federal Trade Commission probe because some of its dealers advertised "certified" used cars that have been recalled but not repaired, the Associated Press reports.
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General Motors Co. has disclosed it is the target of a Federal Trade Commission probe because some of its dealers advertised "certified" used cars that have been recalled but not repaired, the Associated Press reports.
The FTC declined to comment. GM tells the news service it advises dealers several times a week about vehicles that need recall-related repairs. It also has begun withholding discount funds to dealers who try to sell new cars with outstanding recall updates.
AP says no law requires dealers to perform recall repairs before selling a used car. But it notes the FTC may be considering charges of misleading advertising about how certified used cars are presented. Such vehicles, which are inspected and repaired by dealers before being sold, command a higher price than ordinary used cars.
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