Feds put add-on products in their cross hairs, from Automotive News.
The Federal Trade Commission has set its sights on what it calls add-on products: F&I products sold at dealerships such as anti-theft etching or biweekly payments.
“The cases we brought today were the first two — but not the last,” Jessica Rich, director of the FTC Bureau of Consumer Protection, said during a conference call on March 26. She was discussing a crackdown, dubbed “Operation Ruse Control,” on fraudulent dealership practices by authorities in the U.S. and Canada.
Most of the crackdown focused on deceptive marketing and advertising, odometer fraud and other crimes. But Rich made a point of noting the agency’s first-ever enforcement actions related to add-on products.