AG Shapiro Announces Settlement with CarMax Over Non-Disclosure of Open Safety Recalls

December 1, 2022 | Topic: Consumers

HARRISBURG – Attorney General Josh Shapiro announced today a $1 million multistate settlement with CarMax Auto Superstores, Inc., that will require CarMax to disclose open recalls related to the safety of its used vehicles before consumers buy. The settlement is the result of a multistate investigation launched alongside 35 other Attorneys General. This industry-changing settlement will establish that used car dealers should generally disclose open safety recalls to consumers before they buy.

“In Pennsylvania, demand for used cars remains high,” said AG Shapiro. “Consumers deserve to have all the relevant information about a car so they can make an informed choice whether or not to buy, especially if there are open and unrepaired recalls. This settlement will ensure dealerships like CarMax shift gears to ensure Pennsylvanians’ safety comes before profits.”

CarMax will continue to use the National Highway Traffic and Safety Administration’s (NHTSA) vehicle identification number tool to provide this important safety information to consumers. Consumers can also use this tool through NHTSA to check for any open recalls on their vehicles.

CarMax will include 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. CarMax will also present the consumer with copies of any open recalls and obtain the consumer’s signature on that standalone disclosure document before presenting any other sales paperwork. Additionally, CarMax agrees to no longer represent vehicles as “safe.”

Consumers who believe they may have purchased a car that isn’t roadworthy should file a complaint with the Pennsylvania Office of Attorney General’s Bureau of Consumer Protection by visiting OAG’s website, or sending an email to scams@attorneygeneral.gov, or calling 1-800-441-2555 for more information.

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