Attorney General Miyares announces million dollar settlement with CarMax over disclosure of safety recalls

On December 1, 2022, Attorney General Jason Miyares announced a bipartisan national settlement with CarMax Auto Superstores Inc. (CarMax) that will require the retailer to disclose unrepaired recalls related to the safety of its used vehicles to consumers before vehicles are purchased. Virginia is expected to receive $25,699.36 as part of the settlement, which the Office of the Attorney General will use for future consumer protection enforcement purposes.

Attorney General Miyares was joined by a coalition of 35 state attorneys general. The settlement stems from an investigation opened due to concerns that consumers were not aware of unrepaired and potentially serious safety recalls in purchased used vehicles.

“Purchasing a motor vehicle is a big investment. Virginians deserve to have all the information that could impact their decision to buy a car. Consumers deserve to know at the time of purchase whether the vehicle they are purchasing is subject to an open recall, especially if that recall relates to a safety issue,” said Attorney General Miyares. ” This settlement will help set a standard for the used-car industry that requires sellers to provide such notice as part of the sales transaction and ensure Virginians are properly informed before buying a car.”

This settlement requires CarMax to continue to utilize disclosure measures to ensure consumers have information on unrepaired vehicle recalls. CarMax must include hyperlinks for vehicles advertised online and QR codes for vehicles on sales lots, allowing consumers to link directly to information on open recalls as they shop. CarMax must also present consumers with copies of any open recalls before presenting any other sales paperwork and pay participating states $1 million.

CarMax utilizes the National Highway Traffic and Safety Administration’s (NHTSA) vehicle identification number tool to access recall information. The tool is available to the general public on the NHTSA website.

Read a copy of the settlement here.