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Important information

• Additional Info:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  
  Federal Trade Commission v Carshield, et al.

   

  The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency.

   

  On July 30, 2024, in the United States District Court for the Eastern District of Missouri, NRRM,LLC, doing business as Carshield, a nationwide seller of vehicle service contracts (VSC), along with a co-defendant, the administrator of its contracts, entered a mutual settlement through a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief with the Federal Trade Commission.

   

  Carshield neither admitted nor denied any allegations in the Complaint, except as expressly stated in the Order.

   

  According to the Stipulated Order, Carshield will share in paying $10 million to settle Federal Trade Commission charges that its advertisements and telemarketing for VSC are deceptive and misleading and that many purchasers found that any repairs were not covered despite making payments of up to $120 per month.

   

  The Stipulated Order settling the Commission’s complaint bars the defendants from making deceptive and misleading statements in the future and requires them to ensure their endorsers’ testimonials are truthful, accurate, and not deceptive.

   

  The Order settling the complaint addresses the defendants’ alleged violations of the FTC Act. First, it prohibits Carshield from making the misrepresentations described in the complaint and any other misrepresentations related to any good or service. It also prohibits Carshield and the co-defendant from failing to make the required disclosures and from violating the FTC’s Telemarketing Sales Rule.

   

  Next, the Order bars the Carshield from misrepresenting any endorser’s ownership, use, or experience with any product or service. It requires the co-defendant to inform third-party marketers of the order and to review and monitor their advertising and marketing. The Order also imposes standard reporting and compliance provisions that will remain in place for up to 10 years.

   

  Finally, the Order imposes a $10 million monetary judgment against Carshield and the co-defendant, which may be deposited into a fund to redress its customers. If the FTC does so and any funds remain, the remaining money will be deposited into the U.S. Treasury.

   

  For more information, contact the Federal Trade Commission at www.ftc.gov or (202) 326-2222 or Click here for details.
  

  
  
  CarShield’s response: 
  
  As reflected in our continued A+ rating and accreditation from the Better Business Bureau, CarShield is proud of the trust it has earned over nearly two decades of service.
  
  For nearly 20 years, CarShield has helped customers stay on the road when unexpected car repairs arise—a responsibility our 1,500+ employees take seriously.
  
  In the course of ongoing communication with the FTC—including during the prior administration and before recent Supreme Court rulings clarified the limits of the agency’s authority—CarShield worked cooperatively with the agency to affirm that its business practices remain fully compliant with all applicable laws. That dialogue reflected a shared commitment to clarity, transparency, and good-faith service.
  
  CarShield has continued to reinforce its customer communications, provide clear access to detailed plan information, and expand longstanding services. These include a Shield Repair Network of more than 10,000 preferred shops, a nationwide concierge support system to assist with locating repair facilities, and robust rental car and rideshare benefits.
  
  CarShield remains stronger than ever—grounded in its enduring values of trust, service, and accountability.
  
  That commitment to doing right by customers is why CarShield continues to earn and uphold its A+ BBB rating.