New York Settles with CarMax For Failing to Disclose Recalls

A national used car dealer is being fined and ordered to change some of its marketing practices in a settlement with New York State and other state Attorneys General for failing to disclose recalls.

New York Attorney General Letitia James says CarMax failed to disclose open safety recalls on their used vehicles to customers before they sold them.  Some of those recalls included serious safety concerns with vital equipment including brakes, air bags and fuel pumps.  

The one-million dollar agreement with CarMax will require the company to give access to information to customers about any open safety recalls for any vehicles available for purchase and present documentation on recalls before presenting customers with sales paperwork.  New York will receive over $53,770 of the total $1-million settlement agreement funds.

Attorney General James says "CarMax put New Yorkers at risk by allowing drivers to get on the road without warning them that their newly purchased vehicles had open safety recalls. This agreement will protect New Yorkers and ensure that consumers are aware of any safety recall before they start driving."

According to a news release from the Attorney General's office, the multi-state investigation involving a coalition of 35 attorneys general found that CarMax misled consumers by failing to disclose the needed repairs on vehicles with open safety recalls, classifying the vehicles as "safe" despite there being recalls for some essential safety features.

Officials say CarMax will continue to use the National Highway Traffic and Safety Administration's vehicle identification number tool to provide important safety information, including open recalls to customers.

Meanwhile, customers can check for any open recalls on their vehicles using that same tool.