Maryland Attorney General Anthony G. Brown reported that his office’s consumer protection unit has reached a settlement with used car retailer CarMax, Inc. over its alleged failure to disclose open safety recalls on the used vehicles it offered and sold.
The attorney general alleged that CarMax’s failure to disclose the recall status was an unfair and deceptive trade practice in violation of the Maryland Consumer Protection Act.
CarMax advertises vehicles as “CarMax Quality Certified,” alleging that its vehicles have undergone a 125+ point inspection and a detailed reconditioning process. CPD alleged that CarMax made these representations a focal point of its advertising and failed to disclose to consumers that the inspection and reconditioning process did not include fixing open recalls. CPD alleged that consumers unknowingly bought vehicles with open safety recalls on them, which potentially placed those consumers’ safety at risk.
After the CPD began its investigation, CarMax did begin providing information to consumers about vehicles’ open recalls during its sales process.
In addition to requiring CarMax to pay $240,000, the settlement requires CarMax to ensure that consumers are made aware of the recall status of CarMax vehicles prior to purchase, regardless of whether the purchase is made in-person or online. CarMax must include hyperlinks for vehicles advertised on CarMax’s website and QR codes for vehicles on sales lots, which will allow consumers to link directly to information on open recalls as they shop.
CarMax also must present consumers with information about any open recalls before presenting any other sales paperwork.
Following full payment, the state will release CarMax from all civil claims, causes of action, damages, restitution, civil fines, costs, attorneys’ fees, and penalties that it could have brought under the Consumer Protection Act.
Nothing in the agreement affects any private right of action.
“Consumers have the right to know if and when they are purchasing vehicles with open recall that could put them and others on the road at risk,” Brown said.
Consumers can look up the recall status of any vehicle using the National Highway Traffic and Safety Administration’s search tool.
Topics Maryland
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