The Federal Trade Commission announced that CarMax, Inc., Asbury Automotive Group, Inc., and West-Herr Automotive Group, Inc. agreed to settle charges that they touted how rigorously they inspect their used cars but failed to adequately disclose that some of the cars were subject to unrepaired safety recalls. The proposed consent orders prohibit the dealerships from claiming their used vehicles are safe, have been repaired for safety issues, or have been subject to safety-related inspections, unless they are free of open recalls or the companies clearly and conspicuously disclose that the vehicles may be subject to unrepaired recalls for safety issues and explain how consumers can determine whether a vehicle is subject to a recall for a safety issue that has not been repaired and the claims are not otherwise misleading.

Also, following a public comment period, the FTC approved final consent orders in similar cases against General Motors Company, Jim Koons Management Company, and Lithia Motors, Inc. that were settled earlier this year.

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