News & Analysis as of

Service Contracts Automotive Industry

Ballard Spahr LLP

Vehicle Services Company CarShield Settles Complaint with FTC

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CarShield, a company that sells vehicle service contracts (VSCs), will pay $10 million to settle FTC allegations that its advertisements and telemarketing pitches deceived consumers, the agency announced on July 31....more

Hudson Cook, LLP

Recent Settlement with Massachusetts AG Addresses Compliance Emphasis on Collection Calls, Repossession Notices, and Service...

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On September 1, 2021, the Commonwealth of Massachusetts, through the Massachusetts attorney general, entered into a settlement agreement and related Assurance of Discontinuance with a sales finance company. The AOD identifies...more

Snell & Wilmer

Service Contracts Are Not Express Warranties Under the Song-Beverly Consumer Warranty Act

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In Gavaldon v. DaimlerChrysler Corp. (2004) 32 Cal. 4th 1246, the California Supreme Court found that service contracts are not express warranties under the Song-Beverly Consumer Warranty Act and the Act did not otherwise...more

Seyfarth Shaw LLP

California Adopts Major Changes to Warranty Reimbursement Requirements Effective January 1, 2020

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On October 12, 2019, California governor Gavin Newsom signed into law Assembly Bill 179 (A.B. 179), a bill that will make significant changes to the warranty reimbursement provisions of the California Vehicle Code effective...more

Foley & Lardner LLP

Collaboration and Development of Technology in Automotive

Foley & Lardner LLP on

In the not-so-distant past, the automotive industry sought to be mostly self-sufficient. That is to say, that when an automobile manufacturer (commonly referred to as an OEM) wished to add a new feature to one of its...more

Carlton Fields

Automobile Warranty Services Provider Loses On Motion To Dismiss Dealership’s Counterclaims And Request For Preliminary Injunction

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In a dispute between providers of automobile warranty services (“Plaintiffs” or “American Guardian”) and a Florida car dealership (“Defendants” or “JCR”), an Illinois federal district court recently dealt two blows to the...more

Carlton Fields

CFPB Continues to Target Add-On Credit Products

Carlton Fields on

The Consumer Financial Protection Bureau (CFPB) has stepped up its enforcement actions alleging deceptive and unfair practices in marketing and billing for add-on credit protection products. Add-on products have been one of...more

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