CarMax and Two Other Used Car Dealers Settle Charges of Touting Inspections Without Disclosing Safety Recalls
The final orders prohibit the dealers from misrepresenting material facts about the safety or recall status of the used cars they advertise
Following a public comment period, the Federal Trade Commission (FTC) has approved final consent orders with CarMax, Asbury Automotive Group, and West-Herr Automotive Group—settling charges that they touted how rigorously they inspect their used cars, yet failed to adequately disclose that some of the cars were subject to unrepaired safety recalls.
The final orders prohibit CarMax, Asbury, and West-Herr from claiming that their used vehicles are safe, have been repaired for safety issues, or have been subject to a rigorous inspection—UNLESS those vehicles are free of open safety recalls or the companies clearly and conspicuously disclose that their vehicles may be subject to unrepaired recalls and explain to consumers how they can determine a vehicle's recall status.
The orders also prohibit the CarMax, Asbury, and West-Herr from misrepresenting material facts about the safety or recall status of the used cars they advertise.
Additionally, the orders require the companies to inform recent customers by mail that any vehicles they bought as far back as July 1, 2013 may be subject to open safety recalls.