Conn. to get $20K from settlement with used-car retailer CarMax
HARTFORD — Connecticut Attorney General William Tong announced Friday that the state would receive more than $20,000 as a part of a $1 million multistate settlement with used-car retailer CarMax over its disclosure of safety recalls.
The settlement results from a multistate investigation begun in 2014 that found that CarMax advertised that its cars underwent “safety” inspections but did not ensure safety-related recall services were completed before selling a vehicle, according to Tong’s office. The settlement requires CarMax to provide disclosures in writing and on the vehicle itself of any 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 industrywide message that used-car dealers must disclose these open safety recalls to consumers before any sale,” Tong, a Democrat who was elected last month for a second term, said in a statement. “If you are considering purchasing a used car, I strongly encourage that you consult the National Highway Traffic Safety Administration site to learn of any open recalls. Manufacturers are responsible for these repairs at no cost to consumers.”
Richmond, Va.-based CarMax “cooperated fully” with the investigation, according to Tong’s office. CarMax, which describes itself as the country’s largest used-car retailer, said that the settlement terms were “consistent” with the company’s longstanding practices.
“CarMax led the industry in recall transparency by sharing vehicle-specific recall information in-store and online to ensure our customers know about open recalls prior to purchase,” CarMax Chief Operating Officer Joe Wilson said in a statement. “In fact, as soon as NHTSA made available vehicle-specific recall information in 2014, we began providing the information to customers nationwide, and we continue to do so today.”
Wilson added that, “as CarMax is not authorized by manufacturers to complete recall repairs and close out
recalls, we work hard to ensure our customers have the information they need to take action and have recalls repaired at a manufacturerauthorized facility.”
CarMax now includes 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 access this data as they shop, according to Tong’s office. In addition, CarMax will present consumers with copies of any open recalls and obtain the consumer’s signature on that standalone disclosure document before presenting any other sales paperwork, Tong’s office said.
The $20,589.46 that Connecticut will receive through the settlement, which includes 35 states, will support consumer protection enforcement.
“Consumers have a right
to know the full history of any vehicle they’re considering purchasing, including any past recalls,” Connecticut Department of Consumer Protection Commissioner Michelle Seagull said in a statement. “I am pleased this settlement requires consumers receive the full scope of the recall information available about any used vehicle they may consider purchasing.” For the quarter ending Aug. 31, CarMax’s combined retail and wholesale usedvehicle unit sales totaled 376,616, down about 10 percent year over year. During that period, the company’s revenues totaled $8.1 billion, up 2 percent year over year.
CarMax has 239 stores nationwide, according to its website. It has three in Connecticut — in East Haven, Hartford and Waterbury.