General Motors and the Federal Trade Commission have reached a settlement following a probe into the reselling of vehicles involved in the ignition switch recall, according to USA Today. Dealers had been marketing cars as safe to drive despite not completing the recall procedures involving the faulty ignition switch.
GM, in conjunction with two dealer groups, were accused of marketing vehicles as safe after thorough inspections, foregoing proper recall procedures. The vehicles were then resold through GM’s certified pre-owned program.
The settlement does not involve fines, but the FTC said fines could be brought up against GM if it does not follow the consent agreement.
U.S. law prevents dealerships from selling vehicles without performing recall procedures, should there be any. The exception is if dealers clearly state the vehicle has not had a safety issue repaired, and the customer consents to the purchase.
The FTC hinted it may expand its investigation to other automakers, fearing others may be engaging in the same process. The settlement comes after GM paid $900 million to drop criminal investigations by the U.S. Department of Justice.