CarMax has reached a settlement with the Federal Trade Commission (FTC) over claims it didn’t reveal recall information on its cars. CarMax settled a federal complaint over the used car dealer’s failure to disclose safety recall information on some of its vehicles. The Federal Trade Commission announced the settlement with Virginia-based CarMax and two other major used auto retailers last month. The FTC said the dealers touted how rigorously they inspected their used cars, yet they failed to adequately disclose that some of the vehicles were subject to unrepaired safety recalls.
CarMax advertised a “125-plus point inspection” for its cars with “12 hours of renewing – sandwiched between two meticulous inspections.” The fact that some of the cars being sold were subject to safety recalls – and those repairs had not been done – was not adequately explained to buyers. The FTC said:
These recalls included defects that could cause serious injury, including the GM key ignition switch defect, as well as the Takata airbag defect.
Similar complaints were made against the Georgia-based Asbury Automotive Group, which also does business as Coggin Automotive Group and Crown Automotive Group, and New York-based West-Herr Automotive Group. The settlement prohibits the auto dealers from claiming their used vehicles are safe or have been repaired or inspected unless they are free of open recalls. The companies are in the process of notifying customers by mail of an open recalls for vehicle purchased as far back as July 1, 2013.
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