Attorney General William Tong announced on Friday that used-car retailer Carmax has agreed to a $1 million multistate settlement as part of an investigation into the company’s disclosure of safety recalls. Connecticut will receive more than $20,000 through the settlement to support consumer protection enforcement.
The settlement comes after an investigation involving 35 attorneys general that found Carmax advertised that its cars underwent “safety” inspections, but did not ensure safety-related recall services were complete before selling a vehicle, according to the attorney general’s office. As part of the settlement, CarMax is now required to provide written disclosures in writing and on the vehicle itself of open recalls and information on how to check the National Highway Traffic Safety Administration website to confirm any recalls.
“Open safety recalls can be a serious safety risk to drivers, passengers, and all others on the road. Today’s settlement with CarMax sends an important industry-wide message that used car dealers must disclose these open safety recalls to consumers before any sale,” Attorney General Tong said. “If you are considering purchasing a used car, I strongly encourage that you consult the National Highway Traffic and Safety Administration site to learn of any open recalls. Manufacturers are responsible for these repairs at no cost to consumers.”
In addition to including hyperlinks for vehicles advertised online and QR codes for vehicles on the lot that link directly to any open recalls on the vehicle so consumers can be aware of any recalls while they shop, CarMax will also present buyers with copies of any open recalls and require the consumer’s signature on a standalone disclosure document before proceeding with any other sales paperwork.
Carmax cooperated fully with the investigation, according to the attorney general’s office.