On December 1, 2022, nationwide used car dealer CarMax Auto Superstores, Inc. (“CarMax”) and 36 state attorneys general announced a $1 million multistate settlement that will require CarMax to disclose open recalls related to the safety of its used vehicles before consumers purchase them. The settlement resolves an investigation into CarMax’s advertising and sales practices related to vehicle recalls since 2014.
The attorneys general allege that CarMax failed to disclose repairs that were necessary on vehicles with open safety recalls, and it represented that those vehicles were safe despite open recalls for airbags, brakes, fuel pumps, and other critical parts and safety features. Under the agreement, CarMax is enjoined from engaging in any act or practice in violation of the consumer protections acts of the states that are party to the settlement, which include Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
In addition to the injunctive relief, the settlement requires CarMax to help consumers access information about open safety recalls by including hyperlinks for vehicles advertised online and QR codes for vehicles advertised in brick-and-mortar locations that link directly to open recalls through the National Highway Traffic Safety Administration VIN Look-up or an acceptable commercial provider with recall information. CarMax must also present consumers with copies of open recalls and obtain the consumer’s signature on a standalone disclosure document before presenting any other sales paperwork.