Consumer groups seek FTC CarMax probe for 'deceptive' ads


Eleven consumer groups are seeking an FTC investigation into CarMax ads claiming all its vehicles undergo quality checks.

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Used-car retailer CarMax Inc’s advertisements promising its vehicles undergo quality checks are deceptive as it does not fix cars recalled by automakers before reselling them, 11 consumer groups said in a petition to the U.S. Federal Trade Commission, The New York Times reported.

CarMax, however, said that used-car retailers were not authorized by automakers to carry out repairs to recalled cars.

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"CarMax provides the necessary information for customers to register their vehicle with the manufacturer to determine if it has an open recall and be notified about future recalls," CarMax spokesman Casey Werderman said in an email to Reuters on Tuesday.

The petition, filed on Monday, is being supported by New York Sen. Charles Schumer, The New York Times reported.

Werderman also said CarMax supported legislation mandating used-car retailers to fix recalled cars.

The company sold 526,929 used cars in the year ended Feb. 28, according to its latest annual filing.

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