CarMax to Pay $1M for Failing to Disclose Open Safety Recalls, AG Says

The used car retailer CarMax will pay $1 million in a settlement agreement after officials say they failed to disclose open safety recalls on vehicles. 

Pennsylvania Attorney General Josh Shapiro announced the multistate settlement which will require CarMax to disclose open recalls related to the safety of its used vehicles before customers buy them. 

The settlement was the result of a multistate investigation that was launched by 36 Attorneys General, including Shapiro. 

“In Pennsylvania, demand for used cars remains high,” Shapiro said. “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.”

Under the settlement, CarMax will continue to use the National Highway Traffic and Safety Administration’s (NHTSA) vehicle identification number tool to provide vehicle safety information for customers. Customers can also use the tool on the NHTSA website to check for any open recalls on their vehicles. 

CarMax will also 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 that customers can access the 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,” a spokesperson for the Attorney General’s office wrote. “Additionally, CarMax agrees to no longer represent vehicles as ‘safe.’”

NBC10 Responds reached out to CarMax for comment. A spokesperson sent the following statement: 

“CarMax has reached a settlement with the Attorneys General of 36 states to resolve a 2014 inquiry surrounding its advertising and sales practices related to vehicle recalls." 

Since 2014, CarMax has been disclosing vehicle specific recall information in our sales process and online advertising. The settlement terms are consistent with CarMax’s longstanding practices.”

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 manufacturer-authorized facility.”

Anyone who believes they bought a car that isn’t roadworthy should file a complaint on the Pennsylvania Office of Attorney General’s Bureau of Consumer Protection website. You can also email scams@attorneygeneral.gov or call  1-800-441-2555 for more information.