CarMax pays $1 million to settle charges it did not disclose vehicle recalls

NEW YORK — CarMax, the largest U.S. used car retailer, agreed to pay $1 million to resolve claims by 36 states that it failed to disclose open safety recalls to consumers before selling vehicles to them.

Thursday's settlement followed a multistate probe led by Illinois Attorney General Kwame Raoul that began in 2014, amid concerns that consumers were not being warned about necessary repairs and potentially serious safety recalls.

The accord requires the Richmond, Virginia-based company to provide consumers with hyperlinks and QR codes to look up recalls, and documentation that "clearly and conspicuously" discloses open recalls before presenting other sales paperwork.

New York Attorney General Letitia James, who joined the settlement, in a statement said CarMax sometimes classified vehicles as "safe" even if they had been recalled for airbags or other safety features.