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AUTO RETAIL Lithia Motors reaches settlement with Federal Trade Commission Comment By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Jan. 28, 2016 at 10:58 AM Updated Jan 28, 2016 at 5:28 PM By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Jan. 28, 2016 at 10:58 AM Updated Jan 28, 2016 at 5:28 PM » Social News Medford auto retailer Lithia Motors has reached a settlement with the Federal Trade Commission concerning its online pitches that touted rigorous used vehicle inspections but allegedly failed to disclose that some units were subject to unrepaired safety recalls. Under terms of the agreement, Lithia Motors did not admit to any wrongdoing and faces no fines or penalties. The FTC concurrently announced similar agreements with General Motors and an East Coast auto retailer. The FTC’s complaint against Lithia said it offered a dealer-backed “60-Day/3,000 Mile” warranty, in which "vehicles are put through an exhaustive 160-checkpoint Quality Assurance Inspection. We inspect everything from the tires and the brakes to suspension, drive train, engine components and even the undercarriage.” Nonetheless, the FTC alleged, some cars Lithia advertised were subject to unrepaired recalls involving defects in the key ignition switch and other safety issues. Under the FTC's consent order, in effect for 20 years, Lithia is prohibited from claiming its used vehicles are safe or have been subject to a rigorous inspection unless they are free of unrepaired safety recalls, or unless the company clearly discloses the existence of the recalls in close proximity to the inspection claims. According to the agreemen t, Lithia must inform recent customers, by mail, that their vehicles may have an open recall. The requirement applies to Lithia Warranty used vehicles purchased since July 1, 2013. Lithia Motors issued a statement in response to the FTC's announcement. "The FTC does not claim the statements about our inspections were false, but alleges we did not provide sufficient information about vehicles that might have been subject to an open recall. The settlement sets out certain changes we must adopt, and we have already made those changes." The company said it has long had a policy of rigorously inspecting its used vehicles before offering them to the public and making recall repairs when possible. "We are not aware of a single customer complaint about our advertising or disclosures of manufacturer recalls," Lithia stated. "We strongly believe we have fully complied with the letter and spirit of the law. We agreed to a settlement with the FTC to avoid the costs and disruption of litigation." Consumers can check for themselves whether there have been recalls on certain vehicles at www.safercar.gov . Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at https://www.facebook.com/greg.stiles.31 . By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Jan. 28, 2016 at 10:58 AM Updated Jan 28, 2016 at 5:28 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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