Scam Companies Selling Vehicle 'Extended Warranties' Face Lifetime Ban From Industry

Under proposed court orders drawn up on March 23rd, three companies — American Vehicle Protection Corporation (AVP), CG3 Solutions, and Tony Gonzalez Consulting Group — and their owners would be permanently banned from both the extended automobile warranty industry and all outbound telemarketing.

In February 2022, the FTC charged AVP and the two affiliated companies with violating the FTC Act and the Telemarketing Sales Rule. In its complaint, the FTC alleged that AVP falsely claimed to represent dealers and manufacturers, offering fraudulent “bumper-to-bumper” and “full vehicle” coverage policies to customers for between $2,800 and $3,400. According to the FTC, AVP placed hundreds of thousands of unsolicited calls to American consumers (including individuals on the federal Do Not Call Registry) and didn’t honor its 30-day cancellation and refund policy. The complaint claims these scams have fleeced US consumers out of over $6 million since 2018.

“AVP misled consumers about who they were and what they were selling and called a large number of consumers who were on the FTC’s Do Not Call List,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a press release. “Today’s order banning five defendants from the industry and imposing a monetary judgment of $6.6 million continues the Commission’s aggressive crackdown on telemarketing fraud.”