Category Archives: Regulatory

Attorney General Ellison sues used-car dealer for deceptive sales

AG’s Office investigated after receiving consumer complaints: uncovered Midwest Car Search engaged in pattern and practice of deceptive sales, specifically targeting and exploiting Spanish speakers and people with low credit scores

Lawsuit filed in Anoka County asserts violations of Minnesota’s Used Car Law and consumer protection statutes; seeks millions in consumer refunds in addition to injunctive relief and penalties

Full Release: https://www.ag.state.mn.us/Office/Communications/2024/04/23_MCS.asp

home real estate

Choice Home Warranty Prohibited From Selling Warranty and Service Contracts in Georgia

Insurance and Safety Fire Commissioner John F. King announced that Choice Home Warranty is prohibited from selling or soliciting home warranty or service contracts in Georgia.

In March, a Cease-and-Desist order was issued against Choice Home Warranty for failing to meet the surety bond requirements established under Title 33 of the Official Code of Georgia Annotated. The company has failed to post the required bond in an amount of not less than $100,000.00 despite previous warnings. This requirement ensures that Georgia consumers are protected in case a warrantor cannot pay out claims.

Full Release: https://oci.georgia.gov/press-releases/2024-04-10/choice-home-warranty-prohibited-selling-warranty-and-service-contracts

Washington State Insurance Commissioner fines Home Warranty company $100,000 for operating illegally

First Premier Home Warranty Corp fined $100,000 and ordered the New York-based home warranty company to stop conducting insurance business in Washington.

Full Release: https://www.insurance.wa.gov/news/kreidler-fines-new-york-based-company-100000-operating-illegally

FTC Announces Enhanced Penalties for FTC Combating Auto Retail Scams (CARS) Rule Violations in 2024

The enhanced penalties took effect on January 10th and will impact the Combating Auto Retail Scams (CARS Rule) and existing violations for unfair and deceptive acts and practices.  

Full Article: https://complynet.com/resources/articles/enhanced-penalties-for-ftc-violations-in-2024

FTC, Connecticut Take Action Against Auto Dealer for Deceiving Consumers, Forcing Junk Fees

The Federal Trade Commission and the State of Connecticut are taking action against an auto dealer, its owner, and several key employees for systematically deceiving consumers about the price of certified used cars, add-ons, and government fees.

Full Article: https://www.einnews.com/amp/pr_news/679102720/ftc-connecticut-take-action-against-manchester-city-nissan-for-deceiving-consumers-forcing-junk-fees

New York enacts new requirements for subscription auto-renewals and credit card surcharge pricing

New York Governor Hochul signed a new law designed to protect consumers from unwanted subscriptions.

Full Article: https://www.consumerfinancemonitor.com/2023/12/20/new-york-enacts-new-requirements-for-subscription-auto-renewals-and-credit-card-surcharge-pricing/

Warranty Innovations National Forum

Chicago on October 17-18, 2023, at the Palmer House Hilton

200+ warranty industry leaders will convene for The 14th Annual Extended Warranty & Service Contract Innovations National Forum in Chicago on October 17-18, 2023, at the Palmer House Hilton. This highly acclaimed annual event convenes decision-makers across multiple industries who praise the practical, hands-on solutions presented, which they find helps them extract key takeaways that help them with their unique challenges.

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Ore. Warranty Ruling Complicates Insurance Classification

By Brian Casey, Jon Gillum and Greg Norton 

The Oregon Court of Appeals recently held in TruNorth Warranty Plans of North America v. Department of Consumer and Business Services, that a service contract — commonly referred to as an extended warranty — covering commercial property is subject to Oregon’s consumer service contract laws.[1]

The holding was the result of a rare judicial appeal from an administrative law judge’s decision. 

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U.S. Treasury Department Issues Proposed Regulations To Finally Eviscerate Microcaptive Tax Shelters

The U.S. Department of the Treasury has finally regulations to deal with so-called microcaptive transactions.

Microcaptives are, for the most part, insurance companies that attempt to qualify for treatment under section 831(b) of the Internal Revenue Code by way of a shared risk-pool arrangement which only superficially provides risk sharing and risk distribution for tax purposes, and whose real purpose is to provide inflated deductions for the businesses that the microcaptives are insuring.

Read the Full Article: https://www.forbes.com/sites/jayadkisson/2023/04/11/us-treasury-department-issues-proposed-regulations-to-finally-eviscerate-microcaptive-tax-shelters/