agent Entrepreneur logo
MenuMENU
SearchSEARCH

Warranty Scam Defendants Agree to Court Order

FTC sued company, saying it fraudulently sold consumers extended auto plans, cheating them out of millions.

July 12, 2023
Warranty Scam Defendants Agree to Court Order

The proposed court order, which awaits a district court judge’s signature, bans the defendants from extended auto warranty marketing and outbound telemarketing activity.

IMAGE: Pexels/Erik McIean

1 min to read


Defendants in a Federal Trade Commission lawsuit over a telemarketing campaign to sell extended automobile warranties have agreed to a proposed court order banning them from the industry.

The FTC sued operators of what it calls a telemarketing scam who it says called hundreds of thousands of consumers in February 2022, cheating them out of millions of dollars, the agency said in a statement.

Ad Loading...

Kole Consulting Group and owner Daniel Kole are the defendants in the case involving American Vehicle Protection. The FTC says the operation made unsolicited phone calls, claiming affiliation with automakers and offering products providing “bumper to bumper” protection.

“Today’s order bans Kole and his company from the extended auto warranty industry and imposes a monetary judgment of $6.6 million, continuing the Commission’s aggressive crackdown on telemarketing fraud,” said FTC Bureau of Consumer Protection Director Samuel Levine in the statement.

The proposed court order, which awaits a district court judge’s signature, bans the defendants from extended auto warranty marketing and outbound telemarketing activity.

The order’s monetary judgement of $6.6 million is being partially suspended due to the defendants’ inability to pay, the FTC said, leaving $500,000 in required payment.

The FTC settled with other defendants in the case in March.

Topics:Industry

Originally posted on Auto Dealer Today

More Industry

The outside of a blue Gregg Young Chevrolet dealership.
Industry•by Lauren Lawrence•October 22, 2026

Nebraska Rooftop Changes Hands

The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.

Read More →
Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Ad Loading...
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Ad Loading...
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...