CarMax advertises its “CarMax Quality Certified” used vehicles that have undergone a 125+ point inspection and a detailed reconditioning process.
As a seller of used vehicles, CarMax is not required to fix vehicles with "open recalls," meaning vehicles that have been recalled but remain unrepaired.
Federal laws do not require sellers of used vehicles to have those repairs performed before selling the cars.
But considering CarMax advertises its used vehicles as undergoing a "125+ point inspection," Maryland Attorney General Anthony G. Brown saw a problem with CarMax failing to inform consumers about those open recalls.
The Maryland Consumer Protection Division reached a settlement with CarMax over its alleged failure to disclose open safety recalls on used vehicles. According to Brown, CarMax violated the Maryland Consumer Protection Act by failing to disclose the vehicles had open recalls.
“Consumers have the right to know if and when they are purchasing vehicles with open recall that could put them and others on the road at risk," Brown said.
After Maryland authorities began the investigation, CarMax did begin providing information to consumers about open recalls during its sales process.
By agreeing to the settlement, CarMax will pay $240,000 and will also ensure consumers are aware of the recall status of used vehicles whether the purchase is online or in-person.
The company must also include hyperlinks for vehicles advertised on the CarMax website and QR codes for vehicles on sales lots which link directly to information on unrepaired safety recalls.
In addition, the settlement requires CarMax to present consumers with information about any unrepaired recalls before presenting any other sales paperwork.
