FTC asked to investigate CarMax for selling unfixed recalled cars

Safety advocates have taken aim at CarMax, calling for tighter federal regulations to prevent used cars from leaving dealerships with defects unfixed.

Senator Charles Schumer (D-NY) and 11 auto safety groups sent a petition to the Federal Trade Commission asking the agency to investigate wether CarMax’s inspection claims — which do not include a recall check — violate false-advertising regulations.

New car dealers are already barred from selling a vehicle that has been included in a recall campaign, until the repairs have been made, however used car dealers are not bound to the same laws.

“Car dealers shouldn’t sell used cars that have a safety recall to consumers, period,” said Schumer in a statement. “Far too many times we have seen the tragic and often fatal consequences when deficient cars are allowed on the road, and it’s time for the FTC to do everything it can to put a stop to it.”

CarMax has voiced support for legislation that requires used car dealers to fix recalls, as long as the provisions require automakers to provide parts and diagnostic tools to used dealers to fix the vehicles independently. The proposal would require more flexibility than current law allows, as automakers via franchise dealers are currently solely responsible for repairs.

The FTC has not yet publicly responded to the petition.