FTC Approves Final Orders Against Dealers for Failing to Disclose Recalls

Photo via Wikimedia/Ildar Sagdejev
Photo via Wikimedia/Ildar Sagdejev

Following a public comment period, the Federal Trade Commission (FTC) 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 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, according to the FTC.

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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