This consumer class action arises out of Defendants’ illegal sale of “‘Premium Care’ Theft-Gard” (“PCTG”). The PCTG is an aftermarket product distributed, sold and administered by Defendant Alexico Corporation (“Alexico”). It is then sold directly to consumers by the remaining Defendants, each of which is a Pennsylvania car dealer who eitherbrokers the sale on behalf of the consumer or as Alexico’s “Theft-Gard Representative.” The PCTG itself includes the etching of an arbitrary number into the windows of the vehicle to purportedly deter theft while offering a $3,000 indemnity benefit if the covered vehicle is stolen and not recovered. Plaintiff herein contends that the PCTG is insurance that is illegally sold by Defendants, who have not registered as insurance agents or submitted the PCTG to the Insurance Department for rate review and approval. In addition, Defendants misrepresent the PCTG to be a form of “warranty,” but they fail to include the required disclosures under the Magnuson-Moss Warranty Act (“MMWA”), and thereby violate that Act if the PCTG is considered to be a “warranty” or “service contract” within the meaning of the MMWA. Regardless of its characterization, the PCTG, as marketed and sold by Defendants, is an unfair and deceptive act or practice.
Complaint: Alexico Arbitration Complaint