FTC Fines CarShield $10 Million Over ‘Deceptive, Misleading’ Advertising Claims

CarShield promised consumers ‘peace of mind’ and ‘protection’ in advertisements, which the FTC said were ‘deceptive and misleading.’

The Federal Trade Commission (FTC) building in Washington on Sept. 19, 2006. Paul J. Richards/AFP via Getty Images

Auto insurance agency CarShield has agreed to pay $10 million to settle U.S. Federal Trade Commission (FTC) charges of allegedly deceptive and misleading advertising, the FTC said on July 31.

The Missouri-based company, also known as NRRM LLC, advertises and sells vehicle service contracts to consumers throughout the United States for approximately $80 to $120 a month, according to the FTC’s complaint.