(Bloomberg) — General Motors Co. and two car dealers settled U.S. claims that they touted rigorous inspection of used cars, yet were selling vehicles that had been subject to safety recalls and hadn't been repaired.
GM marketed used cars at local dealerships that had open recalls for defects related to ignition switches, power steering, braking and airbag deployment without disclosing the problems, the Federal Trade Commission said in a statement Thursday.
"Companies touting the comprehensiveness of their vehicle inspections need to be straight with consumers about safety-related recalls, which can raise major safety concerns," said Jessica Rich, the head of the FTC's consumer protection unit. Rich said on a phone call with reporters that the agency would continue to monitor car dealers' ads. "We do hope these actions send a message to the market as a whole."
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