Such practice is not itself illegal, however authorities appear to be taking issue with ‘certified’ pre-owned vehicles that are leaving dealer lots without first receiving recall repairs.
“On June 3, 2015 we received notice of an investigation by the Federal Trade Commission concerning certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs,” GM wrote in its latest 10-Q filing with the Securities and Exchange Commission.
The company has not publicly disclosed additional details beyond the brief summary in the financial disclosure, however the wording suggests that FTC investigators may be targeting both GM and its franchised dealers.
The filing also cautions that “various investigations” related to the ignition-switch recall are still ongoing. Potential fines or other penalties could be levied by the US Department of Justice, Congress, SEC, Transport Canada or 50 state attorneys general.
“We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations,” the filing notes. “Such investigations could in the future result in the imposition of material damages, fines, civil consent orders, civil and criminal penalties or other remedies.”
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