FTC Sued Over Recalled Vehicles Labeled as ‘Certified’

Order Reprints

Feb. 7, 2017—The Federal Trade Commission (FTC) is being sued for its decision to allow automakers to call used vehicles “certified” after they have been inspected for mechanical problem, despite having an outstanding recall.

The groups filing the suit are The Center for Auto Safety, Consumers for Auto Reliability and Safety (CARS), the U.S. Public Interest Research Group (PIRG), MASSPIRG, CONNPIRG, and CALPIRG.

The only condition set by the federal agency was that there had to be a prominent notice in an ad noting that the vehicle might have a recall that still needs to be fixed. The suit asks the court to overturn the FTC’s decision. It was filed Monday afternoon in the U.S. Court of Appeals in Washington, D.C.

In a statement Monday, the groups said the FTC’s decision “set a defacto standard for the auto industry that allows dealers to deceptively advertise cars with dangerous and potentially lethal safety defects that have killed and maimed people.”

"Instead of protecting consumers, the FTC is protecting unscrupulous auto dealers who engage in false and deceptive advertising about the safety of the cars they offer for sale to the public," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety.


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