JIM HENRY

Same scam, different day

Jim Henry is a special correspondent for Automotive NewsJim Henry is a special correspondent for Automotive News
Article Tools
Other blogs
Related Links
Related Topics

Here's a bit of buzz from vendor circles: Some of the companies that got in trouble last year for using misleading and aggressive sales tactics to sell extended-service contracts directly to consumers could be back at it.

Only now they may have branched out into other products, like roadside assistance and wheel-and-tire policies.

According to the Federal Trade Commission, it wouldn't be the first time scammers changed products but stuck with the same sleazy tactics.

Earlier this year the feds cited a company for making "robo calls" to sell extended-service contracts. In a settlement, the company accepted a ban from telemarketing altogether. A few years ago, that same company signed a consent agreement and agreed to repay consumers $185,000, promising it would stop using similar tactics to sell vacation packages.

As fast as regulators write new rules, somebody finds a way around them.

You can reach Jim Henry at autonews@crain.com.

image Print   Send a letter Respond to Editor   Reprint Reprints        

COMMENTS

Have an opinion about this story?

Click here to submit a Letter to the Editor, and we may publish it in print.

Or submit an online comment below

Readers are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.