The Federal Trade Commission has come under fire by consumer groups regarding General Motors and its sales of recalled vehicles, according to a report by The Detroit News.
The Center for Auto Safety has come forth criticizing the commission for allowing GM to sell recalled cars as “certified pre-owned” vehicles even after acknowledging open recalls.
“There is no place in a [certified pre-owned] program for vehicles with open recalls which endangers the life of anyone who buys such a vehicle,” CAS Executive Director Clarence Ditlow wrote in a letter to the U.S. Attorney for the Southern District of New York Preet Bharara, who helped negotiate the ignition switch settlement with GM.
The complaint argues the actions by GM violate provisions in the Federal Trade Commission Act by selling used cars with open recalls, including some vehicles with the faulty ignition switch.
The complaint brought forth also details GM vehicles being sold with open recalls for defective body control module connection systems, which can result in a variety of issues with braking, and defective chassis electronic module, which can cause engine stalls.
The FTC ruled GM was able to sell these vehicles as long as it “discloses, clearly and conspicuously, and in close proximity to such representation, any qualifying information related to open recalls.” Consumer groups stated the ruling “emasculates” the $900 million settlement GM agreed to last year, settling all criminal charges over the ignition switch recall.
GM stated it “currently prohibits the certification or delivery of certified pre-owned vehicles if they are subject to a GM recall until they have been repaired.”