Colorado Politics

CarMax to pay $1 million in safety settlement with Colorado, other states

CarMax Auto Superstores Inc. will pay $1 million to dozens of states as part of a settlement over the used car company’s failure to disclose safety recalls of vehicles.

Colorado Attorney General Phil Weiser announced the multistate settlement Thursday, which includes 35 other states throughout the country. Colorado is set to receive $20,000 of the total $1 million settlement payment, Weiser said. 

“Failing to alert someone to an open recall on their car could put their lives at risk,” Weiser said. “This settlement makes clear that CarMax must warn consumers of such known safety threats before selling them a vehicle.”

Weiser said CarMax consumers were not aware of unrepaired and potentially serious safety recalls in purchased used vehicles. Under the settlement, CarMax must now directly link to any open recalls on their vehicles and not represent vehicles as “safe.” The company must also provide customers with copies of the recalls and get their signature on the documents before purchase. 

In a statement, CarMax said the recall concerns stemmed from a 2014 investigation and, since then, the company has been disclosing recall information in its sales process and online advertising.

“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,” said Chief Operating Officer Joe Wilson. “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 said the terms of the settlement are consistent with their “longstanding practices.”

In addition to Colorado, attorneys general of the following states were involved in the settlement: Alabama, Arizona, Arkansas, 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, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin.

CarMax
Adam Ewing/CarMax

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