Attorney General Paxton has announced a nationwide multistate settlement for $1 million with CarMax Auto Superstores, Inc. after CarMax advertised that it performed thorough inspections and reconditioning but failed to check and disclose to consumers whether the vehicles were subject to open safety recalls. Of the total settlement funds, Texas will receive $100,000.
In addition to the settlement funds, CarMax must also share open, unrepaired recalls related to the safety of its used vehicles before consumers make a purchase. To ensure that consumers are fully informed of active recall information, CarMax will present consumers with copies of any open recalls and obtain the consumer’s signature on a standalone disclosure document before presenting any other sales paperwork.
To help consumers check for any open recalls prior to making a purchase, CarMax will continue to use the National Highway Traffic and Safety Administration’s (“NHTSA’s”) vehicle identification number tool to provide important safety information to consumers. CarMax will also include hyperlinks for vehicles advertised online and QR codes for vehicles on the lot that link directly to any open recalls so consumers can access this information as they shop.
This industry-changing settlement establishes that used car dealers should disclose open safety recalls to consumers before they buy. Every consumer deserves to have the full picture when making a purchase, especially on so significant a purchase as a vehicle, and these changes will make important progress in ensuring that consumers are more fully informed.