FTC Sends More Than $9.6 Million to Consumers Who Bought Deceptively Advertised Vehicle Service Contracts from CarShield and American Auto Shield, LLC

The Federal Trade Commission is sending checks totaling more than $9.6 million to eligible consumers impacted by CarShield’s misleading claims about its vehicle service contracts.

In July 2024, CarShield, a seller of vehicle service contracts, and American Auto Shield, LLC (AAS), the administrator of such contracts, agreed to pay nearly $10 million to settle an FTC complaint. The complaint alleged CarShield’s advertisements and telemarketing for vehicle service contracts were deceptive and misleading, and that purchasers found many repairs were not “covered,” despite making payments of up to $120 per month. The FTC alleged CarShield’s ads deceptively represented that all repairs to consumers’ vehicles, or to “covered” systems within their vehicles, would be paid for under the plans; consumers would receive a rental car at no cost if their car broke down; and consumers could use the repair facility of their choice for repairs.

Under the order settling the FTC’s allegations, CarShield and AAS are prohibited from making deceptive and misleading statements in the future when advertising their vehicle service contracts and they are required to ensure their endorsers’ testimonials are truthful, accurate, and not deceptive.

The FTC is sending checks to 168,179 affected consumers. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, Analytics, at 855-298-8877, or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2024, FTC actions led to more than $339 million in refunds to consumers across the country.