CarShield settlement: $9.6 million sent to customers over false advertising

Related: CarShield Settlement (Federal Trade Commission)

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Source: AL.com

CarShield settlement: $9.6 million sent to customers over false advertising

Published: Dec. 18, 2025, 10:51 a.m.

By Diane Mwai | dmwai@al.com
More than 168,000 eligible consumers will receive money due to false advertising by a vehicle service contract seller.

The Federal Trade Commission announced it will send checks totaling more than $9.6 million to consumers affected by misleading advertising about vehicle service contracts from CarShield.

The federal agency said Carshield and American Auto Shield, LLC, reached an agreement in July 2024 to pay approximately $10 million to settle an FTC complaint, according to a press release.

The complaint alleged the company produced advertisements and telemarketing that were deceptive. It explains that consumers who purchased the vehicle service contracts found that many repairs were not covered.

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Read more: https://www.al.com/news/2025/12/carshield-settlement-96-million-sent-to-customers-over-false-advertising.html