HARTFORD — Sen. Richard Blumenthal is calling for federal legislation giving regulators more authority over used-car sales following an investigation that showed a high number of cars with safety violations at two CarMax dealerships in Connecticut.
“CarMax is playing a deadly game of used car recall roulette,” Blumenthal said at a press conference Monday at the Legislative Office Building. “That kind of game can have tragic consequences.”
The Democratic senator cited a report by the Consumers for Auto Reliability and Safety Foundation, in cooperation with the ConnPIRG Education Fund, that found serious safety issues with vehicles sold at CarMax locations in Hartford and East Haven.
According to the report, compiled by the research firm M&R Strategic Services, 10 percent of the vehicles at the Hartford CarMax outlet were subject to safety recalls that had not been addressed. At the company’s East Haven sales office, it was 16 percent of the vehicles. CarMax, based in Virginia, is the nation’s largest used-car retailer.
Blumenthal is sponsoring a bill that would give the National Highway Traffic Safety Administration the power to ban the sale of unrepaired recalled used cars. He is also calling for the Federal Trade Commission and state regulators to take a more aggressive stance against companies that engage in deceptive sales practices designed to convince buyers that the vehicles have undergone rigorous safety checks.
“We’re here today to call for a crackdown by the FTC on this deceptive and misleading advertising leading consumers to believe these cars have been reconditioned, that all of the essential parts have been inspected and found quality certified,” Blumenthal said.
CarMax vigorously rebutted Blumenthal’s comments.
“CarMax leads the industry in recall transparency,” spokesman Casey Werderman said.
He pointed out that every vehicle listed for sale on the company’s website and on its app includes a link to the NHTSA website, which contains recall information. CarMax sales staff provides consumers with a copy of the vehicle’s recall report, and before the sale is final the buyer must sign a form acknowledging receipt of that recall notice, Werderman said.
Blumenthal said CarMax and other used-car sellers have an obligation to ensure any safety violations listed in the recall notice are fixed before selling a vehicle. Such repairs are generally covered by the car manufacturer’s warranty.
“Disclosure is not enough,” Blumenthal said. “The car dealers ought to be the ones responsible for repairing the vehicles.”
