Keith Ellison, other AGs settle with CarMax over recall disclosures

Minnesota is among the states that have reached a settlement with used car dealer CarMax, requiring the company to do more to disclose recall information.

The Office of Attorney General Keith Ellison’s announced the settlement Thursday, after joining in an action along with 35 other attorney generals. 

The agreement requires CarMax to disclose any vehicle recall that hasn’t been repaired to consumers before they buy it. CarMax had previously advertised vehicles as "safe" despite having active recalls due to safety issues, according to Ellison.

“It’s tough to afford your life if businesses aren’t up front with you about the condition of the products you’re buying from them — and that’s especially true when you’re considering a big purchase like a car,” Ellison said in a statement.

“I’m pleased CarMax agreed to make unprecedented changes to its sales practices to ensure that consumers are made aware of open recalls before making a purchase.”

As part of the settlement, CarMax now offers hyperlinks to recall information for vehicles listed online and QR codes with that information for vehicles on the lot.

CarMax will also continue to use the National Highway Traffic and Safety Administration’s tool to help consumers identify current recall information, with the company saying in a statement that the practices that were involved in the settlement pre-date 2014, when it wasn't using the NHTSA tool

There are two CarMax locations in Minnesota: in Brooklyn Park and Maplewood.

Minnesota will receive around $20,000 of the $1 million CarMax will pay nationwide as part of the settlement.

Here is CarMax's statement from Joe Wilson, Chief Operating Officer:

“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. In fact, as soon as NHTSA made available vehicle specific recall information in 2014, we began providing the information to customers nationwide and we continue to do so today. As CarMax is not authorized by manufacturers to complete recall repairs and close out recalls, we work hard to ensure our customers have the information they need to take action and have recalls repaired at a manufacturer-authorized facility."