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Scammers behind 'extended vehicle warranty' spam calls may face lifetime bans

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Signage outside the Federal Trade Commission (FTC) headquarters in Washington, DC, US, on Friday, Feb. 17, 2023. (Ting Shen/Bloomberg via Getty Images) The Federal Trade Commission (FTC) is taking action against the operators of an "extended vehicle warranty" scam that may lead to a lifetime ban from all outbound telemarketing and the extended automobile warranty industry.A federal district court in Florida on Friday drew up proposed court orders to implement the ban following an FTC lawsuit against three companies and their owners implicated in the extended vehicle warranty telemarketing scam.

The scammers placed hundreds of thousands of unsolicited calls to American consumers – including many on the FTC’s Do Not Call List – and claimed to be affiliated with vehicle makers.They also deceptively claimed that their extended vehicle warranty products, which cost thousands of dollars, offered "bumper to bumper" protection.

Ultimately, they fleeced consumers out of millions of dollars while violating the FTC Act and the Telemarketing Sales Rule.CONSUMERS REPORTED LOSING NEARLY $8.8 BILLION TO SCAMS IN 2022: FTCSignage outside the Federal Trade Commission (FTC) headquarters in Washington, DC, US, on Friday, Feb.

17, 2023. (Ting Shen/Bloomberg via Getty Images) The companies – American Vehicle Protection Corp. (AVP), CG3 Solutions Inc.

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