New York Attorney General Letitia James and her Connecticut counterpart William Tong were part of the coalition of 36 state attorneys general who reached a $1 million settlement with CarMax Auto Superstores Inc. (NYSE:KMX) in regard to the company”™s safety-related recall services.
A multistate investigation found that while CarMax advertised its cars as having undergone “safety” inspections, it did not ensure safety-related recall services were complete before selling a vehicle. The settlement will require CarMax to provide written disclosures both in writing and on the vehicle itself of any open recalls, along with information on how to check the National Highway Traffic Safety Administration website to confirm any recalls. Additionally, CarMax may not describe its cars as “safe” or not having “safety issues.”
Within the settlement, New York will receive $53,772.49 while Connecticut will receive $20,589.46.
“When someone buys a car, they need to know that it will keep them safe,” said James. “CarMax put New Yorkers at risk by allowing drivers to get on the road without warning them that their newly purchased vehicles had open safety recalls. This agreement will protect New Yorkers and ensure that consumers are aware of any safety recall before they start driving.”
“If you are considering purchasing a used car, I strongly encourage that you consult the National Highway Traffic and Safety Administration site to learn of any open recalls,” said Tong. “Manufacturers are responsible for these repairs at no cost to consumers.”
Photo: Theron Trowbridge / Flickr Creative Commons
