Can Dealers Sell Used Cars with Unrepaired Recalls?

Jan 25,2018

Did you know that used cars are often sold consumers even if they are subject to active unrepaired recalls? General Motors, along with used car dealers Jim Koons Management and Lithia Motors, were all subjects of FTC complaints for failing to disclose that some of the used vehicles they were selling had unrepaired recalls on them.

The FTC complaint stated that the vehicles with unrepaired recalls had serious defects that could cause injuries. These included an ignition switch defect that can affect engine power, power steering, braking and airbag deployment. Despite this, the companies claimed the vehicles were safe and had undergone rigorous inspections.

FTC Settles Complaints Against Car Companies

The complaints against GM, Jim Koons Management and Lithia Motors were each settled separately. The FTC has issued consent orders prohibiting the companies from claiming their used vehicles are safe, unless they are free of unrepaired recalls. The companies may also clearly disclose the vehicles’ unrepaired recalls. The companies must also mail their recent customers a warning that their vehicles might have an open recall.

While the settlement terms are better than nothing, advocates from Consumers for Auto Reliability and Safety (CARS) point out that no other industry is allowed to sell products that have been recalls on them. The Consumer Product Safety Act prohibits the sale of goods that have been recalled, on everything from toys to tools.

“It is unacceptable for used car dealers to sell vehicles with unrepaired recalls, while touting the vehicles as safe,” said Attorney Walter Clark, founder of Walter Clark Legal Group.

Our firm has been handling personal injury cases throughout the California Low Desert and High Desert communities for over 30 years. With a 95% success rate, the California personal injury attorneys at Walter Clark Legal Group will fight to hold those responsible for your loss accountable and win compensation to cover medical bills, lost wages, and pain and suffering. If you have been injured in an auto accident and want to discuss your legal options, contact us today for a free consultation with an experienced personal injury lawyer. We have offices in Indio, Rancho Mirage, Victorville, and Yucca Valley and represent clients through the entire California Low Desert and High Desert communities.

DISCLAIMER: The Walter Clark Legal Group blog is intended for general information purposes only and is not intended as legal or medical advice. References to laws are based on general legal practices and vary by location. Information reported comes from secondary news sources. We do handle these types of cases, but whether or not the individuals and/or loved ones involved in these accidents choose to be represented by a law firm is a personal choice we respect. Should you find any of the information incorrect, we welcome you to contact us with corrections.