CBS17.com

CarMax settles with NC, other states over disclosing open safety recalls

RALEIGH, N.C. (WNCN) — CarMax has settled with North Carolina and other states to require the used vehicle retailer to disclose open recalls on autos before people buy them, Attorney General Josh Stein said.

The AG announced the settlement Thursday, with the company paying $1 million to 36 states. North Carolina’s share is $30,086.29.

“Families need to know that their cars are safe,” Stein said. “I’m pleased that as a result of this settlement, CarMax will be upfront about potential vehicle safety and recall issues when North Carolinians are considering buying a used car from them. This information will help people to make the decision about the car that’s right for them.”

The settlement came after an investigation found car buyers were not aware of potentially serious safety recalls that were not performed on the vehicles they purchased.

It requires the company to disclose any unperformed safety recalls before a car is purchased.

CarMax Chief Operating Officer Joe Wilson said in a statement that the company is not authorized to perform those recall repairs itself, but it works hard “to ensure our customers have the information they need to take action and have recalls repaired at a manufacturer-authorized facility.”