Filed under: Car Buying, Government/Legal, Safety
Safety groups and a prominent politician are taking aim at CarMax, the country's largest used car chain, over allegedly deceptive advertising, and they're hoping to prompt a major shift in the way that pre-owned vehicles are sold in the US, as well. In two letters filed with the Federal Trade Commission this week, a coalition of consumer groups and Senator Charles Schumer (D-NY) urge the regulator to investigate CarMax and force all used car dealers to fix any pending recalls on a model before it can be sold.
Currently, the law only insures that new cars are up to date on recalls. Senator Schumer's letter to the FTC asks that the regulator pass new rules covering used cars in the same way. He claims, "I am also actively exploring with my colleagues ways to enhance the agency's power to take action on this matter via legislation."
The senator also puts his support behind the consumer groups' petition, which is being spearheaded by an organization called Consumers for Auto Reliability and Safety. Schumer goes so far as to ask the FTC to launch "full-fledged investigation" into the their claims.
The advocates' major concern lies in CarMax's "CarMax Quality Certified" label that promises that its used cars are inspected, repaired and checked for water damage. However, the company doesn't check to see if all pending recall repairs are complete on the vehicle. The petition alleges that the advertising could "mislead even sophisticated car buyers" into thinking the cars are safe. It believes that the company should easily be able to check the recall status and supply that information to consumers. The group's goal is to end this type of advertising from the business.
CarMax appears at least partially on board with the idea - with a catch. A company spokesperson told The Detroit News that it supports added regulation, if it also forces manufacturers to supply "all recall notices, the same diagnostic and repair information, and the tools and parts that manufacturers make available to their franchise dealers." That doesn't seem too likely.
Scroll down to read Senator Schumer's letter to the FTC and the advocates' petition submitted to the regulator.
Continue reading FTC urged to halt 'deceptive' CarMax ads over recalled car issue
FTC urged to halt 'deceptive' CarMax ads over recalled car issue originally appeared on Autoblog on Thu, 26 Jun 2014 17:15:00 EST. Please see our terms for use of feeds.
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