Consumer Safety Groups Appeal Federal Ruling Enabling Car Dealers To Conceal Recall Information In San Diego

Consumer Safety Groups Appeal Federal Ruling San Diego

As lemon law attorneys, we are constantly astounded by how enormous firms find methods to skirt the rules and defraud people in the shadows. Consumer and safety groups have recently pushed back against a federal court order that allows the FTC to allow car dealerships to lie about the safety of hazardous recalled vehicles.

Thankfully, several of the most well-known vehicle safety and consumer advocacy organizations have stepped forward. Consumers for Auto Reliability and Safety (CARS), the Center for Auto Safety, and the United States Public Interest Research Group (USPIRG) have all filed notices of appeal in response to this decision. This is part of a larger campaign to safeguard consumers from dangerous vehicles that have been recalled.

What Exactly Is The Issue?

General Motors and publicly traded vehicle dealership chains CarMax, Lithia, Koons, Asbury, and West-Herr have consent orders with the Federal Trade Commission. These consent orders allow these merchants to sell recalled second hand vehicles using risky and deceptive advertising. These automobiles may have fatal flaws that jeopardize driver safety.

Consent agreements issued by the Federal Trade Commission allow companies to advertise recalled automobiles as “safe” or “repaired for safety.” They can market the car as a “certified vehicle,” implying that it has undergone stringent checks and can be sold at a higher price.

This is a significant issue because the vehicle can be advertised as “inspected” and “safe” despite the fact that the free safety recall repairs have not been completed. All the dealer has to do is state that the car “may” be subject to an “open recall.”

In other words, dealers can sell recalled automobiles (that have been shown to have faults) without having to make any repairs. These consent orders allow big-name automakers to put people in danger on purpose in order to reduce their own financial losses. This is not only unethical, but it also puts the buyer and other drivers on the road in grave danger.

“Under state statutes, such deceptive advertising has been viewed as clearly unconstitutional by various Courts in the past.” However, the FTC’s consent orders make it more difficult for victims of unscrupulous car dealers to take advantage of some of the most essential state consumer protection laws,” said Bernard Brown, a nationally famous attorney, in a press release issued in early November 2021.

What Exactly Is The Point Of The Appeal?

The legal appeal, which was filed on November 4th, 2021, aims to have the federal court ruling overturned by the Washington D.C. Circuit Court of Appeal. On Labor Day 2021, this decision was made (September 6th).


California boasts some of the country’s most consumer-friendly lemon laws. You may be eligible for compensation if the dealership intentionally sold you a damaged vehicle (and it wasn’t sold “as is”). So give Scott Law Group P.C. a call at (619) 345-5599 to know more!

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Scott Law Group P.C.

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