The U.S. Federal Trade Commission has confirmed that it is investigating advertising of General Motors’ “certified” used cars, regarding their safety recall status. The FTC is the first federal agency to take action to protect the public from car dealers’ sales of unrepaired recalled used cars. CARS applauds the FTC for acting to police vehicle safety in the used car market, under existing laws.
According to the Detroit News, “GM said it was notified June 3 of the investigation by the FTC that concerned “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”
CARS and our consumer group allies have been urging the Federal Trade Commission to crack down on CarMax, over its sales of unsafe, recalled used cars. CarMax is the largest retailer of used cars in the U.S. CarMax advertises that all its vehicles must pass a rigorous “125 – point inspection” to qualify to be sold as “CarMax Quality Certified” vehicles.
However, CarMax openly admits that it knowingly and deliberately sells cars that are being recalled by the manufacturer because they have lethal safety defects. CarMax neglects to ensure that the cars are repaired and safe to drive, before offering them for sale. The CARS Foundation and CALPIRG Education Fund recently issued the report “CarMax Is Endangering Lives in California” about the unsafe, recalled cars CarMax offered for sale in Oxnard and South Sacramento, CA.
New York City’s Department of Consumer Affairs was the first local agency to crack down on car dealers’ sales of unsafe, recalled used cars, under a law in New York that requires dealers to certify that vehicles they offer for sale are roadworthy.
Read more: Detroit News: GM Faces FTC Investigation