Consumers across the United States might not be getting as many of those annoying “warranty services” robocalls now that a South Florida network of businesses agreed to a lifetime ban.
American Vehicle Protection Corp. (AVP) and a handful of related defendants, including CG3 Solutions, Tony Gonzalez Consulting Group, Tony Allen Gonzalez and brother, Charles Gonzalez, have agreed to permanently stop participating in the extended auto warranty market and any other type of outbound telemarketing, the Federal Trade Commission announced.
The agreement between the companies and the FTC still must be approved by a federal judge, the FTC said in a news release. The agreement includes a $6.6 million judgment against the defendants that will be suspended because of their inability to pay it, the release says.
The FTC’s complaint, filed in U.S. District Court in Fort Lauderdale in February 2022, alleged that AVP and its marketing partners sold extended automobile warranties to consumers across the U.S. through telemarketers who ignored the federal Do Not Call list and misrepresented their affiliations with various car makers and dealerships.
Promises made by the telemarketers included that consumers were buying “full vehicle” warranty coverage, and could obtain refunds within 30 days of their purchase, the FTC said.
“However, consumers purportedly have not and did not receive the coverage promised after paying hundreds or thousands of dollars, nor are they able to obtain the promised refund,” the FTC said in an October filing.
Despite assurances of “bumper-to-bumper” coverage, consumers were not provided a long list of excluded parts until after submitting their down payment, the FTC’s complaint states.
“For example, during the sales pitch, one consumer asked if struts were covered, and the telemarketer told him that they were.” But the warranty paperwork states that struts are not covered, and the consumer who tried to get that part repaired or replaced was refused coverage, the complaint says.
Another consumer, it added, was denied coverage for a water pump despite AVP’s telemarketing representations about full vehicle coverage.
Charging between $2,800 and $3,400 per warranty, the operation “bilked” consumers out of more than $6 million since 2016, the FTC alleged.
American Vehicle Protection Corp. and CG3 Solutions Inc. (doing business as My Protection Plan) were based at 700 E. Atlantic Blvd. in Pompano Beach, the FTC’s complaint states. It also identified Tony Allen Gonzalez as officer or manager of both companies and Tony Gonzalez Consulting Group.
Sunbiz, the Florida Division of Corporations website, lists AVP’s address as 2950 W. Cypress Creek Road in Fort Lauderdale when its status became “inactive” in October.
Those records list “Charlie” Gonzalez as president of CG3 Solutions, which operated out of a single-family home in Plantation. Tony Gonzales Consulting Group operated out of a home in Margate, state records show.
The FTC is continuing to litigate against two other defendants — Kole Consultant Group and its president Daniel Kole. While the FTC suit lists the company’s address as 13749 NW 22nd St., Sunrise, state records show its primary address as a 5,562-square-foot home in Weston with a $1.4 million market value as assessed by the Broward County Property Appraiser. The company is listed by Sunbiz as “active.”
Kole served as an officer at AVP and CG3 Solutions and played a major role in the operations, the FTC said, including providing start-up funds for AVP, reviewing telemarketing scripts, dictating changes to the scripts and firing employees.
An attorney for Kole declined to comment for this story, citing ongoing litigation. Attorneys for the other defendants did not immediately respond to requests for comment.
The FTC charged AVP with seven counts of illegal activity. Charges included violations of federal acts prohibiting unfair or deceptive acts in commerce, making misrepresentations in sales, and calling consumers whose phone numbers appear on the Do Not Call Registry.
AVP contested the FTC suit, denying the charges and filing its own lawsuit accusing the commission of overstepping its authority and acting outside its jurisdiction. Three months before the FTC filed its suit, AVP had temporarily shut down operations and revamped its marketing policies and practices to ensure compliance with federal laws, its suit states.
In October, U.S. District Judge Rodolfo A. Ruiz dismissed AVP’s suit, determining the FTC was within its authority to seek a permanent injunction to shut down the operation.
