Home Courts New York and Connecticut in settlement with CarMax over safety-related recall issues

New York and Connecticut in settlement with CarMax over safety-related recall issues

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

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Phil Hall's writing for Westfair Communications has earned multiple awards from the Connecticut Press Club and the Connecticut Society of Professional Journalists. He is a former United Nations-based reporter for Fairchild Broadcast News and the author of 11 books (including the upcoming "100 Years of Wall Street Crooks," published by Bicep Books). He is also the host of the SoundCloud podcast "The Online Movie Show," host of the WAPJ-FM talk show "Nutmeg Chatter" and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill's Congress Blog, Profit Confidential, The MReport and StockNews.com. Outside of journalism, he is also a horror movie actor - usually playing the creepy villain who gets badly killed at the end of each film.


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