FTC Approves Final Orders Settling Charges That Used Auto Dealers Touted Inspections Without Disclosing That Some Cars Were Subject to Unrepaired Safety Recalls

Following a public comment period, the Federal Trade Commission has approved final consent orders with CarMax, Asbury Automotive Group and West-Herr Automotive Group, settling charges that they touted how rigorously they inspect their used cars, yet failed to adequately disclose that some of the cars were subject to unrepaired safety recalls.

The final orders announced today prohibit CarMax, Asbury and West-Herr from claiming that their used vehicles are safe, have been repaired for safety issues, or have been subject to a rigorous inspection, unless they are free of open recalls, or the companies clearly and conspicuously disclose that their vehicles may be subject to unrepaired recalls for safety issues and explain how consumers can determine a vehicle’s recall status. The orders also prohibit the companies from misrepresenting material facts about the safety or recall status of the used cars they advertise.

In addition, the orders require the companies to inform recent customers, by mail, that vehicles they bought as far back as July 1, 2013, may be subject to open recalls.

The Commission vote approving the final orders against CarMax, Asbury and West-Herr GM, and letters to commenters was 2-0.

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