An ‘industry-changing’ $1 million settlement with CarMax Auto Superstores, Inc. was announced Thursday by Pennsylvania Attorney General Josh Shapiro. The settlement requires CarMax to disclose open recalls related to the safety of its used vehicles prior to consumers’ purchase.
The settlement establishes that used car dealers generally disclose open safety recalls to consumers prior to purchase. It is the result of a multistate investigation launched alongside 35 other Attorneys General.
Shapiro said in the statement that as demand for used cars remains high in Pennsylvania, consumers deserve to have relevant information about a vehicle to make an informed decision to buy, particularly if there are open and unrepaired recalls.
“This settlement will ensure dealerships like CarMax shift gears to ensure Pennsylvanians’ safety comes before profits,” said Shapiro.
CarMax will continue to use the National Highway Traffic and Safety Administration’s (NHTSA) vehicle identification number tool to provide customers with important safety information. CarMax will use 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 data as they shop.
In addition, CarMax will present consumers with copies of 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 Additionally, CarMax agrees to no longer represent vehicles as “safe.”