June 24 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.
"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
The petition, filed on Monday, is being supported by New
York Senator Charles Schumer, the New York Times reported. (nyti.ms/1rv7Uhh)
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.
Shares of CarMax, the largest U.S. used-car retailer, were
down 3.4 percent at $50.16 in late trading on the New York Stock
(Reporting by Ramkumar Iyer in Bangalore; Editing by Kirti