Attorney General Alan Wilson announces multistate settlement with CarMax over the disclosure of safety recalls

South Carolina Attorney General Alan Wilson announced a $1 million multistate settlement with CarMax Auto Superstores, Inc., and 35 attorneys general that will require CarMax to disclose open (unrepaired) recalls related to the safety of its used vehicles before consumers buy.

“South Carolina consumers deserve to know whether the used car they’re interested in purchasing is subject to an open recall,” Attorney General Wilson said. “Safety recalls not only affect the purchaser but may also affect other drivers on our roads.”

CarMax will continue to use the National Highway Traffic and Safety Administration’s (NHTSA) vehicle identification number tool to provide this important safety information to consumers.  Consumers can also avail themselves of this tool (https://www.nhtsa.gov/recalls) 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 now includes 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 to not represent vehicles as “safe.”

The South Carolina Attorney General’s Office was on the executive committee for this case. South Carolina will receive roughly$41,500. CarMax cooperated fully with the investigation.

Joining AG Wilson in the settlement are the attorneys general of Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin.