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WASHINGTON, Dec 16 (Reuters) - CarMax Inc and two other used vehicle retailers have agreed to settle a federal complaint that they failed to disclose to buyers that some vehicles they were selling were under safety recall orders, the Federal Trade Commission said on Friday.
The FTC said CarMax, Asbury Automotive Group Inc and West-Herr Automotive Group had agreed to settle charges that they touted the thoroughness of their vehicle inspections in advertising but then sold vehicles that were still under safety recall orders.
Under the agreement, the companies are barred from claiming their used vehicles are safe and have been repaired for safety issues unless they are free of unrepaired recall orders issued by the vehicle manufacturers, the FTC said.
Reporting by David Alexander; Editing by Eric Walsh