Delaware AG Jennings announces CarMax settlement


WILMINGTON - Delaware Attorney General Kathy Jennings on Thursday announced a $1 million bipartisan multistate settlement with CarMax Auto Superstores, Inc., and 35 Attorneys General.

The settlement will require CarMax to disclose open (unrepaired) recalls related to the safety of its used vehicles before consumers buy.

“Requiring disclosure of open safety recalls is essential for Delawareans looking to purchase safe, used vehicles,” Ms. Jennings said in a news release.

“My office will continue to hold car dealers accountable when it comes to issues that impact the safety of a vehicle.”

On Thursday, CarMax released a statement from Chief Operating Office Joe Wilson that read:

“CarMax led the industry in recall transparency by sharing vehicle specific recall information in-store and online to ensure our customers know about open recalls prior to purchase.

"In fact, as soon as NHTSA made available vehicle specific recall information in 2014, we began providing the information to customers nationwide and we continue to do so today.

"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.”

CarMax will continue to use the National Highway Traffic and Safety Administration’s vehicle identification number tool to provide this important safety information to consumers, the AG said. Consumers can also avail themselves of this tool to check for any open recalls on their vehicles.

This industry-changing settlement establishes that used car dealers should generally disclose open safety recalls to consumers before they buy.

CarMax must now 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 not to represent vehicles as “safe.”

This matter was handled for the Delaware Department of Justice by the Attorney General’s Fraud and Consumer Protection Division, including Deputy Attorney General Michael Clarke, Paralegal Rhynn Evans, and Special Investigator Robert Schreiber.

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